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100			_9647 _aAnenberg, Elliot
245			_aCan more housing supply solve the affordability crisis? : _bevidence from a neighborhood choice model
260			_bRegional Science and Urban Economics, _c24 April 2018.
300			_a35 pages
500			_aKEYWORDS: Housing affordability, housing supply, neighborhood choice
520			_aAbstract: We estimate a neighborhood choice model using 2014 American Community Survey data to investigate the degree to which new housing supply can improve housing affordability. In the model, equilibrium rental rates are determined so that the number of households choosing each neighborhood is equal to the number of housing units in each neighborhood. We use the estimated model to simulate how rental rates would respond to an exogenous increase in the number of housing units in a neighborhood. We find that the rent elasticity is low, and thus marginal reductions in supply constraints alone are unlikely to meaningfully reduce rent burdens. The reason for this result appears to be that rental rates are more closely determined by the level of amenities in a neighborhood—as in a Rosen-Roback spatial equilibrium framework—than by the supply of housing.
524			_aPlease cite this article as: Anenberg, E., Kung, E., Can more housing supply solve the affordability crisis? Evidence from a neighborhood choice model, Regional Science and Urban Economics (2018), doi: 10.1016/j.regsciurbeco.2018.04.012.
650		0	_aHousing Affordability _zInternational _zNorth America _9496
700			_9648 _aKung, Edward
856			_uhttps://doi.org/10.1016/j.regsciurbeco.2018.04.012 _yView item on publishers website
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999			_c627 _d627