Economics Research Community Seminar – Dr Lorenzo Neri

Title: Knocking it Down and Mixing it Up: Spillover Effects of Public Housing Regenerations

Date: 23 November 2022
Time: 13:00-14:00
Location: NUBS 4.06

Guest Speaker: Lorenzo is a Lecturer (Assistant Professor) at the School of Economics and Finance at the University of St Andrews.
His research interests are in applied microeconomics, labour economics, economics of education, and urban economics.

If you would like to attend, please register using the following link: https://forms.office.com/r/qzMSHnXKfV.

Abstract: This paper studies the effects of regenerating public housing into mixed-income communities on the local housing market. We exploit a wave of public housing regenerations in London that not only demolish and rebuild existing public housing but also almost double the number of units on-site with new market-rate units. Over a six-year period, we estimate that regenerations significantly raise nearby house prices and rents, although house prices decrease slightly farther away. We also find that they attract higher-income households, increase positive amenities (e.g., cafés, restaurants), and reduce negative amenities (e.g., crime). The results are consistent with strong demand effects concentrated near the buildings and moderate effects from increased supply that persist in the broader area. We provide suggestive evidence that changes in a neighborhood’s socioeconomic composition are important to explain price effects: regenerations in low-income areas and those adding a large number of market-rate units lead to larger price increases. Overall, our findings indicate that mixed-income housing can revitalize neighborhoods near decaying public housing, but the supply of new market-rate units can increase unaffordability in low-income neighborhoods.