Upzoning and Gentrification: Heterogeneous Impacts of Neighbourhood-level Upzoning in New York City

There are two primary perspectives on the effects of upzoning. Advocates argue that eliminating restrictive density regulations will increase housing production and reduce housing cost burdens. Conversely, skeptics express concerns about the impact of upzoning on existing residents. They worry that new developments may primarily serve high-income households, potentially leading to gentrification and the displacement of current residents.

It is important to note the significant variation in policy interventions regarding upzoning. Some upzoning efforts are project-specific, aimed at facilitating large-scale redevelopment. Others target specific neighborhoods for potential upzoning within a city. For instance, Minneapolis exemplifies citywide upzoning, while California represents a statewide approach. The intensity of upzoning can vary greatly; it may involve minor adjustments, such as permitting accessory dwelling units in single-family districts, or substantial increases, such as the over 3,000% increase in allowable density seen in Hudson Yards, New York.