Year Published
2010
Abstract
Affluent neighborhoods present a potentially attractive location for retail establishments
because of their higher purchasing power and demand for a wide range of specialized
goods and services. However, if high income households perceive retail in general – or
certain types of retail, such as Big Box stores – as an undesirable use, they may be able
to block commercial development through zoning and the political process. In this
paper we shed light on these issues by examining the relationship between
neighborhood income and several different types of retail presence for 58 large U.S
metropolitan areas. We combine detailed data from the National Establishment TimeSeries database on retail establishments and employment, by industry category and firm
type, with Census data on ZCTA income and demographics. Results indicate that retail
density varies with income for certain retail types, such as food service and chain
supermarkets and drugstores. In addition, average establishment size increases with
income for all retail types. Retail density increases with population density, as
expected, and decreases with distance to CBD and with share of owner-occupied
housing.
because of their higher purchasing power and demand for a wide range of specialized
goods and services. However, if high income households perceive retail in general – or
certain types of retail, such as Big Box stores – as an undesirable use, they may be able
to block commercial development through zoning and the political process. In this
paper we shed light on these issues by examining the relationship between
neighborhood income and several different types of retail presence for 58 large U.S
metropolitan areas. We combine detailed data from the National Establishment TimeSeries database on retail establishments and employment, by industry category and firm
type, with Census data on ZCTA income and demographics. Results indicate that retail
density varies with income for certain retail types, such as food service and chain
supermarkets and drugstores. In addition, average establishment size increases with
income for all retail types. Retail density increases with population density, as
expected, and decreases with distance to CBD and with share of owner-occupied
housing.
Research Category
Topics