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Low-income housing in high-amenity areas: Long-run effects on residential development
Journal article   Peer reviewed

Low-income housing in high-amenity areas: Long-run effects on residential development

Paul Thorsnes, William R J Alexander and David Kidson
Urban Studies, Vol.52(2), pp.261-278
2015
url
https://doi.org/10.1177/0042098014528999View
Published Version

Abstract

environmental amenities gentrification hedonic house values public housing residential land development
Centre-left governments from the 1940s into the 1970s developed several large areas in the urban fringe of Dunedin, New Zealand, for low-density, mostly single-family public rental housing. The public housing in these areas is now accessible, well-endowed with natural amenities, and allocated to very low-income households. Analysis of the spatial variation in natural amenities with that of household incomes and house characteristics suggests large-scale effects of the public housing developments: diversion of higher-income housing to other suburban areas and possibly maintenance of older high-quality housing in central areas. Interestingly, centre-right governments may have opened the door to market forces by encouraging tenants to purchase their public rental house. We find evidence that recent general increases in house prices have encouraged relatively high-income households to purchase ex-state rentals in these high natural amenity areas

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