Even if new housing reduces rents regionwide, scholars are divided as to when and whether new market-rate apartments reduce rents in nearby blocks. A new study seeks to answer this question.

Numerous economic studies show that cities that allow lots of new housing have lower housing costs than places with highly restrictive zoning, and thus that the anti-housing policies of cities such as New York and San Francisco (and their suburbs) contribute to regional high rents.
But even pro-housing commentators have suggested that this might not be true at the neighborhood-by-neighborhood level, at least in newly gentrifying neighborhoods. Some believe that such housing increases demand for a neighborhood, which in turn breeds gentrification, which in turn creates higher rents.
However, a new study, performed by two economists and one doctoral student,* suggests that new market-rate housing reduces rents. This study covered buildings in 11 major cities that were built between 2014 and 2016. As a proxy for gentrification, the study focused on areas where there was "no other luxury building within 500 meters." However, these areas were already wealthier than the citywide average, with rising rents and an above-average percentage of new housing built since 2010.
The study found that before construction, rents rose more rapidly within 200 meters of these new buildings than in areas 200-800 meters away. By contrast, after construction rents rose more slowly within 200 meters of these buildings. Thus, it appears that these new buildings caused rents to rise less rapidly (at a time when rents were increasing almost everywhere). Although neighborhood population increased near these buildings, the increased demand was not sufficient to raise rents.
On the other hand, this study does not necessarily prove that new housing in every conceivable neighborhood will lower housing prices. At least two questions require further research: First, do these results apply for all cities? Or is there a difference between already-expensive cities such as New York (where upzoned areas are often just a few blocks away from downzoned areas, thus funneling demand into the former set of areas) and cheaper cities such as Atlanta? Second, are the results different for lower-income neighborhoods (as opposed to neighborhoods that are middle-class or nonresidential)?
*I am happy to mention them and thus plug their work: Brian James Asquith, Evan Mast, and Davin Reed.

The Right to Mobility
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Bend Eliminates Parking Minimums
The city is complying with an Oregon state mandate that some cities have challenged in court.

How Virginia Counties Use Zoning to Stifle Development
Some state legislators are proposing action at the state level as counties block development using zoning and development requirements even as housing prices rise sharply in the region.

Seattle Brings Free Transit to Public Housing
Linking transit programs to housing can lower administrative costs and streamline the process for riders.

Columbus Could Lower Downtown Speed Limits
The city council will vote on a proposal to lower speed limits to 25 miles per hour to improve safety and make downtown more walkable and welcoming to pedestrians.

Traffic Safety Bills Proposed in Washington’s State Legislature
As traffic fatalities continue to climb in Washington and around the country, three proposed state bills would prohibit some right turns on red, reduce the BAC limit for DUI arrests, and require more young drivers to take driver’s education courses.
York County Government
York County, Human Resources
Virginia Passenger Rail Authority
HUD's Office of Policy Development and Research
Harvard GSD Executive Education
Harvard GSD Executive Education
Sonoma County Transportation Authority
City of Piedmont, CA
City of Morganton

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