Supply and Demand: Debating the Blame for Gentrification

Jim Russell and Daniel Kay Hertz are engaged in an ongoing debate about how supply and demand in markets of so-called "superstar metros" influences processes of gentrification.

1 minute read

May 28, 2014, 5:00 AM PDT

By James Brasuell @CasualBrasuell


Jim Russell writes the most recent installment in the debate, clarifying points he originally made about recent academic research "that adds to the literature about the real estate market problems caused by limited (by whatever means) supply." The original report is called Superstar Cities, authored by Joseph Gyourko, Christopher Mayer, and Todd Sinai.

Russell's clarifying point: "What defines the geographic variance in [the research] case is the quality of demand, not the restriction of supply. Lots of places have some sort of constraint on housing. Few of those places qualify as 'superstar'….Within a metro, quality of supply matters, too."

Russell's most recent post responded to a post by Daniel Kay Hertz saying that Russell originally turned the conclusion of the study on its head. From Hertz's analysis of the white paper: "The housing crisis that’s led to wildly growing income segregation everywhere from Chicago to Kansas City is, actually, about 'demand outstripping supply.' And this paper is just the last in a long line of research supporting that conclusion."

Tuesday, May 27, 2014 in Pacific Standard

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

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

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.

May 14, 2025 - Diana Ionescu

Rendering of California High-Speed Rail station with bullet train.

California High-Speed Rail's Plan to Right Itself

The railroad's new CEO thinks he can get the project back on track. The stars will need to align this summer.

May 19, 2025 - Benjamin Schneider

Cobblestone street with vintage street lamps in Savannah, Georgia.

Savannah Reduces Speed Limits on Almost 100 City Streets

The historic Georgia city is lowering speed limits in an effort to reduce road fatalities.

May 20 - WJCL

Sign for Loma Alta Park in Altadena, Los Angeles County.

A Park Reborn: Resilience and Renewal in Fire-Stricken Altadena

Rebuilt in just two months after the devastating Eaton Fire, Loma Alta Park now stands as a symbol of community resilience and renewal, even as some residents hope recovery efforts will continue to support housing stability and long-term equity.

May 20 - Pasadena NOw

Colorful historic homes in Madrid, Spain.

Spain Moves to Ban 66,000 Airbnbs

The national government is requiring the short-term rental operator to remove thousands of illegal listings from its site as part of an effort to stem a growing housing crisis.

May 20 - The New York Times

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.