Peer-reviewed findings from major studies across the U.S. and internationally. Tap any card for details.
−6%
nearby rents
New buildings decrease rents in nearby units by about 6% relative to units slightly farther away.
Rent EffectsMoving ChainsDetails
Using comprehensive change-of-address records from 11 U.S. cities (Atlanta, Austin, Chicago, Denver, LA, NYC, Philadelphia, Portland, San Francisco, Seattle, and DC), the researchers found that new market-rate buildings decrease rents in nearby units and increase in-migration from low-income areas.
Asquith, Mast & Reed (2023) — "Local Effects of Large New Apartment Buildings in Low-Income Areas"
−1%
per 10% supply
For each 10% increase in housing stock, rents decrease by 1% in properties within 500 feet of new construction.
Rent EffectsDetails
Using a comprehensive dataset of rent rolls in New York City, the study found that new construction reduces not just rents but also sale prices in the immediate vicinity. The effect is strongest for properties closest to the new building and diminishes with distance.
Li (2022) — "Do New Housing Units in Your Backyard Raise Your Rents?"
−17%
displacement risk
The risk of displacement falls by 17% for households within 100 meters of a new project.
DisplacementDetails
Studying San Francisco, this research directly measured whether new market-rate housing causes nearby residents to be displaced. The finding is clear: residents near new construction are less likely to move out involuntarily, not more.
Pennington (2021) — "Does Building New Housing Cause Displacement? The Supply and Demand Effects of Construction in San Francisco"
70
units freed per 100 built
New market-rate construction triggers moving chains that quickly reach middle- and low-income neighborhoods.
Moving ChainsDetails
Studying Helsinki with detailed registry data, the researchers traced actual household moves triggered by new market-rate buildings. They found that the chain of moves reaches low-income areas even in the short run. Market-rate supply improves affordability outside the immediate sub-market where construction occurs.
Bratu, Harjunen & Saarima (2021) — "City-wide Effects of New Housing Supply"
↑
all groups move in
New construction increases rates of people moving in across all socio-economic groups in gentrifying neighborhoods.
DisplacementRent EffectsDetails
In the nine-county San Francisco Bay Area, new market-rate construction in gentrifying neighborhoods neither worsened nor eased rates of moving out, but it increased in-migration across all income levels. New construction makes neighborhoods more attractive for higher earners and more affordable for lower-income households simultaneously.
Chapple et al. (2022) — Federal Reserve Bank of San Francisco Community Development Working Papers
Max
benefit to lowest
The lowest-income households benefit the most from new market-rate construction as a percentage of their household income.
Rent EffectsDetails
Extending Li's NYC rent-roll data, Rollet's modeling finds that the affordability gains from new market-rate construction are progressive — they disproportionately benefit lower-income households who spend a larger share of their income on rent.
Rollet (2025) — Extension of Li (2022) rent-roll analysis, New York City
+11%
moderate-income HHs
Jersey City saw the largest increase in moderate-income households of all surrounding municipalities from 2018–2023.
Jersey CityDetails
Despite substantial new "luxury" construction, Jersey City saw an 11% increase in households earning under $75,000/year. This directly contradicts the narrative that new development leads to socio-economic displacement. JC's high rate of per-capita housing production has kept it affordable relative to similarly situated NYC neighborhoods.