The Determinants of Household Migration Into and Out of Distressed Neighborhoods

Abstract

This study focuses on the factors affecting the decisions of households to move into and out of 2 distressed neighborhoods in Tel Aviv Israel. An important characteristic of neighborhood deterioriation is the process of selective migration whereby certain households that can afford to move out of a neighborhood do so and others of a lower socioeconomic level take their place. The decision to move is directly related to the desire to relocate and the total accruing utility to the household from the consumption of the combination of housing services and neighborhood qualities is expected to be greater than it is in the present location. The 2 neighborhoods selected have a relatively high density (persons per room) a low level of educational attainment per person and a low income per household. Results show that out-migration households of both areas are relatively more satisfied with their new dwellings and new neighborhoods than they are with their old dwellings and old neighborhoods. To identify the reasons for moving out of and into each of the 2 neighborhoods a hypothetical compensation exercise is carried out. Most households in both neighborhoods are dissatisfied with the former neighborhoods quality of environment for raising children as well as with its safety and its deficiency in maintaining law and order. Thus households moving out did so primarily because of unsatisfactory neighborhood qualities; on the other hand households moving into each of the 2 neighborhoods were motivated primarily by the availability of relatively low cost housing. The possible preliminary policy implications are: public or government intervention in these distressed neighborhoods should be aimed at improving neighborhood qualities. At the same time young couples should be encouraged and aided in their search for new dwellings to move into these neighborhoods because these young households are usually composed of well trained or skilled workers with adequate educational attainment. It is crucial to provide these households with the neighborhood qualities they seek otherwise they might attempt to move out as soon as it is within their financial capabilities to do so.