The Neighborhood Effects of Filtering

This article attempts to examine the filtering issue within a broad market framework, emphasizing some of the potentially serious neighborhood implications of the turnover process. It concludes that the negative social welfare effects associated with the market adjustments that take place in older inner city neighborhoods as a result of the expansion of the suburban inventory could be sufficiently great to offset the positive gains resulting from the chains of moves initiated by the new building activities on the urban fringe. This is because the vacancy creation and withdrawal process associated with filtering is not under policy control. Copyright American Real Estate and Urban Economics Association.