The cycle of move-ins and move-outs is adding vacancies and opportunities for more affordable apartments across certain metro areas. A report from the Federal Reserve Bank of Minneapolis illustrates this "cycle of moves" and that "new units help keep current prices down for everyone by opening up new opportunities for low- and moderate-income renters over a few short years through a chain of residential moves," according to the study.
The Fed cites data from an economist from the University of Notre Dame that "within five years, the aggregated chain of residential moves ultimately results in about 70 new openings for renters in lower-income neighborhoods for every 100 new market-rate apartments."
The study reviews the connection between housing supply and affordability through "Yes In My Backyard" (YIMBY) activity and revitalization as well to show their impacts on filtering, which like all real estate, is based on location.
"Filtering effects are likely to be smaller where rents are already relatively low and vacancy rates are already high; outside of revitalization projects, these areas are already unlikely to see much investment and new development."