As cities face housing affordability challenges, some local governments adopt land-use reforms to increase the residential development capacity in the city. This type of “upzoning” policy aims to increase housing supply and lower local housing costs, but it can also create positive amenity effects that attract high-income households to the neighborhood. This paper studies how the large-scale neighborhood upzoning in New York City between 2004 and 2013 affected local housing supply, prices, and residential mobility patterns using a difference-in-differences method. I compare upzoned areas and the adjacent areas outside the upzoned boundaries over time after compiling a parcel-level dataset that merges zoning amendment maps with microdata tracking individual address histories. I find that relaxing zoning regulations leads to increases in housing supply. There is also a modest increase in the probability of incumbent residents moving to a different neighborhood or leaving the metropolitan area, but they are not more likely to be displaced to lower-income areas. Finally, there is evidence that after the upzoning, in-migrants come from slightly higher-income neighborhoods. These results suggest that in this context, upzoning can both increase housing supply and change the composition of local residents in the neighborhood in the long term.
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