Abstract

This paper examines the relationship between institutional investor activity and metropolitan gentrification in the United States. Using a balanced panel of 38 metropolitan areas from 2012 to 2024, I combine Redfin housing market data with American Community Survey socioeconomic data to estimate a series of linear probability models. Metropolitan gentrification is measured using home price growth, increases in the share of residents with bachelor's degrees, and declines in poverty rates, while progressively richer model specifications account for mortgage rates, metropolitan fixed effects, year fixed effects, and local housing market conditions. The results show a positive relationship between institutional investor activity and metropolitan gentrification, with the estimated effect increasing across specifications and becoming statistically significant at the 10 percent level in the preferred model. Overall, the findings suggest that institutional investor activity is positively associated with metropolitan gentrification after accounting for key observable economic and housing market factors, although the analysis does not establish causality.

Advisor

Davison, Colin

Department

Business Economics

Disciplines

Real Estate

Publication Date

2026

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2026 Edward L. Budd