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Impacts of a French Urban Renewal Program on Local Housing Markets

Author

Listed:
  • Sylvain Chareyron

    (Université Paris-Est Créteil, ERUDITE, TEPP, France)

  • Florence Goffette-Nagot

    (Univ Lyon, CNRS, GATE UMR 5824, F-69130 Ecully, France)

  • Lucie Letrouit

    (Paris School of Economics, Ecole des Ponts ParisTech, 48 boulevard Jourdan 75014 PARIS, France)

Abstract
Urban renewal programs have been implemented in many countries to fight housing decay, poverty concentration, and associated social ills in the last decades. In this paper, we propose an evaluation of a large-scale urban renewal program launched in France in 2004. Using a novel estimator aimed at avoiding bias in the estimation of treatment effects heterogeneous across treatment groups or time periods, and complementing its results with a more precise double fixed effects difference-in-differences estimator, we find no significant effect of the program on housing values and transaction volume. However, we do find a significant impact on the social profile of housing buyers and sellers: an increased number of upward transitions of housing units, from blue-collar sellers to intermediate category buyers or from intermediate category sellers to executive buyers, and reduced housing transactions among executives. Altogether, our findings suggest a renewed interest of upper socio-professional categories to invest or keep their property in the renovated neighborhoods.

Suggested Citation

  • Sylvain Chareyron & Florence Goffette-Nagot & Lucie Letrouit, 2020. "Impacts of a French Urban Renewal Program on Local Housing Markets," Working Papers 2030, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    • Handle: RePEc:gat:wpaper:2030
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    References listed on IDEAS

    as
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    Cited by:

    1. Baraldi, Anna Laura & Immordino, Giovanni & Stimolo, Marco, 2022. "Self-selecting candidates or compelling voters: How organized crime affects political selection," European Journal of Political Economy, Elsevier, vol. 71(C).
    2. Xiaojun Li & Jieyu Wang & Ke Luo & Yuanling Liang & Shaojian Wang, 2022. "Exploring the Spillover Effects of Urban Renewal on Local House Prices Using Multi-Source Data and Machine Learning: The Case of Shenzhen, China," Land, MDPI, vol. 11(9), pages 1-16, August.

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    More about this item

    Keywords

    Place-based policies; urban renewal; housing prices; housing spillovers; difference-in-differences;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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