Policy Induced Gentrification: Evidence from Tower Block Demolitions across England and Wales
Abstract
This paper studies how urban regenerations affect neighbourhoods. Using novel data on social housing tower block locations, demolitions, and planning applications across England and Wales, I investigate whether and how the demolition of tower blocks fosters a new trajectory for the neighbourhood. I leverage the staggered nature of demolitions to identify dynamic effects on housing supply, population and prices, uncovering significant heterogeneity across space. While neighbourhoods in London experience rapid recovery and signs of gentrification post-demolition, other cities struggle to rebound. This suggests the potential for multiple equilibria, likely arising from the coordination between developers and residents.
