image via Bloomberg
image via Bloomberg

Kids from low-income families are better served living in neighborhoods that are more economically diverse, and inevitably, more expensive, Bloomberg staffer Patrick Clark writes, His conclusion is drawn from two studies published by Zillow and Harvard economists Raj Chetty and Nathaniel Hendren, respectively. Clark explains why this is the case,

"Over the last two decades, housing costs have increased faster in cities that offer better opportunity for economic mobility, according to research published today by Zillow. That probably means there’s less housing to go around for poor families in the areas where they’re best primed for success. And when poor families can find housing in those places, they’re likely to spend a greater share of their income on it.

None of this should come as a surprise to observers of urban real estate markets, many of which received an influx of affluent knowledge workers in the last 15 years. The Zillow report suggests that some of the best places for economic mobility are coastal cities like San Francisco and Boston that have also been some of the hottest housing markets. It probably hasn't helped that builders of both for-sale and rental housing have largely focused on the high end of their markets in the years since the housing bust."

Read more >