The influence of housing oversupply on residential segregation: exploring the post-socialist city of Leipzig†

Abstract

In this article, we contribute to a better understanding of contextual differences related to residential segregation. We illuminate one specific contextual factor—housing oversupply—and how it intersects with historically inherited patterns of socio-spatial differentiation and other drivers of residential segregation. The study is based on an analysis of how segregation has developed over the last 20 years in the city of Leipzig, Germany. This case offers the rare possibility of studying the impact of city-wide housing oversupply on residential segregation, rather than concentrating on decline or decay in specific areas. We examine how oversupply emerged at the meeting point of changes in market structures, housing preferences, welfare state interventions, and migration trends in the post-socialist transition. Using existing statistical data, we demonstrate how oversupply has fostered a fast and thorough reshuffling of residential patterns. After a period of resolving segregation patterns from the socialist era, oversupply acts as a catalyst for recently emerging residential segregation patterns.