Is Urban Sprawl Good for Minorities?

Abstract

This article investigates the effect of urban sprawl, as measured by employment decentralization, on minority housing consumption gaps since the housing bust. Previous research contends that sprawl contributes to reducing the Black–White housing consumption gap by increasing the supply of land in housing markets and thereby increasing affordability. Antisprawl policies may therefore exacerbate the Black–White housing disparity. This research makes two contributions to the literature. First, the article examines how changes in sprawl may have varying influences on the Black–White housing gap, a previously unexamined facet of this relationship. In the vast majority of metropolitan areas in this sample, sprawl is predicted to exacerbate the Black–White housing gap until sprawl reaches a threshold. Only in a limited number of high-sprawl metropolitan areas does sprawl contribute to reducing the Black–White housing gap. Second, the article examines differences in housing gaps for three distinct minority groups—Blacks, Asians, and Hispanics—using recent data from the 2009 American Housing Survey. For Blacks, sprawl continues to have varying effects on housing consumption. For Asians, urban sprawl yields significant gains in housing consumption relative to Whites. However, no significant results occur for Hispanics. This article demonstrates that the independent effect of urban sprawl on U.S. minority housing consumption is a highly uneven process in the post–Great Recession economy. As such, arguments that antisprawl policies reduce minority gains in housing should be treated with considerable skepticism.