In a recent article, Marco Giacoletti, Matthijs Korevaar and Franklin Qian study a large-scale policy relaxing residential land supply constraints near major Dutch cities in the mid-1990s (the so-called ‘Vinex policy‘). Land allocation was determined centrally and was unrelated to pre-policy local market dynamics. Using administrative data, the effects on housing, mobility, and labour markets are explored.
New supply attracted high-income individuals, primarily from nearby high-income neighborhoods, where
house prices decreased. New supply also increased local employment in surrounding areas, especially in high-earning occupations. The researchers develop a rich quantitative spatial equilibrium model and show that the impact of relaxing supply constraints on housing markets and welfare crucially depends on job reallocation and on in-migration flows.
Full reference
Giacoletti, M., M. Korevaar, F. Qian, How Housing Supply Expansions Reshape Cities (December 01, 2025). SSRN Working paper