Limited Housing Supply Correlated with Higher Rates of Gentrification

For insights into the gentrification of U.S. urban areas, researchers studied high-income buyers of housing in lower-income neighborhoods. To slow gentrification, the housing supply must be boosted, say the researchers.

1 minute read

June 28, 2020, 5:00 AM PDT

By Lee Flannery @leecflannery


Seattle Victorian

Lucy Autrey Wilson / Shutterstock

Recent research conducted by Laurie Goodman, Ellen Seidman, and Jun Zhu focused on the pace of gentrification in metropolitan statistical areas by measuring the rate at which high-income homeowners buy property in low-income neighborhoods based on 2018 Home Mortgage Disclosure Act and 2018 American Community Survey data. 

"Our examination reveals that, in many MSAs, high housing costs—resulting from a lack of available housing—cause affluent buyers to look for homes in low- and moderate-income (LMI) neighborhoods. That means cities’ housing supply can determine how fast gentrification may occur. Boosting the supply of housing can slow the pace of new buyers moving into lower-income neighborhoods," say Goodman, Seidman, and Zhu. 

A geographical analysis of high-income households in 20 largest U.S. metropolitan statistical areas found that Los Angeles had the highest rate of high-income mortgage borrowing for the purchase of housing in low-income neighborhoods in 2018 at just over 60%. In Chicago, a city with more affordable housing, that rate was only 21%. "Boosting the housing supply by easing local land use, building, and zoning restrictions and encouraging alternative forms of housing like manufactured housing and accessory dwelling units would make homes more affordable and allow more buyers at all income levels to find homes, slowing the pace of gentrification," according to the researchers. 

Wednesday, June 24, 2020 in Urban Institute

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View from inside car's driver seat while driving.

Car Designs Make it Harder to See Pedestrians

Blind spots created by thicker pillars built to withstand rollover crashes are creating dangerous conditions for people outside vehicles.

15 minutes ago - Bloomberg CityLab

Red and white "Wildfire Evacuation Route" sign on signpost.

Cal Fire Chatbot Fails to Answer Basic Questions

An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

July 10 - The Markup

Protester at Echo Park Lake, Los Angeles holding sign that says "Housing is a human right"

What Happens if Trump Kills Section 8?

The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

July 10 - Shelterforce Magazine

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA