Does Affordability Status Matter in Who Wants Multifamily Housing in Their Backyard?

Michael D Eriksen; Guoyang Yang

doi:10.1162/rest.a.282

Does Affordability Status Matter in Who Wants Multifamily Housing in Their Backyard?

Michael D Eriksen¹; Guoyang Yang²

¹ Professor of Economics, Daniels School of Business, Purdue University [email protected] · ² Assistant Professor of Real Estate, Leon Hess Business School, Monmouth University [email protected]

The Review of Economics and Statistics 2025

Abstract We provide evidence that similar price effects occur from new multifamily rental housing on surrounding owner-occupied property values regardless of whether the development was subsidized. These effects were on average negative in higherincome communities, but became either non-distinguishable from zero or positive in higher-income communities with sufficient population density. These results imply that previous opposition to all new rental housing by homeowners is misguided as developments could raise property values in some higher-income neighborhoods.

DOI: 10.1162/rest.a.282
Pages: 1-32
Language: en
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