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arXiv · 2409.15462

Transportation Technology and Gentrification: Evidence from the entry of Ridesharing Services

Sumit Agarwal·Shashwat Alok·Sergio Correia·Deepa Mani·Bernardo Morais
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Abstract

We analyze the staggered entry of rideshare services across U.S. metropolitan areas, estimating its effect on the spatial redistribution and real outcomes of residents. Ridesharing services gentrify urban areas-especially those with ex-ante lower housing values-causing housing prices to rise 9 percent, with the in-migration of rich-younger individuals more than offsetting the out-migration of incumbent residents and reduced in-migration of poorer individuals. Impact on incumbent residents is conditional on ex-ante homeownership. For homeowners, there is no displacement and a decline in delinquency rates. For non-homeowners, displacement and delinquency rates rise 11 percent and 42 percent, respectively. Our study emphasizes how the private provision of high-end transportation technologies can increase urbanization and exacerbate inequality.

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Sumit Agarwal, Shashwat Alok, Sergio Correia, Deepa Mani, Bernardo Morais. 2024-09-23. Transportation Technology and Gentrification: Evidence from the entry of Ridesharing Services. https://arxiv.org/abs/2409.15462

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