How College Grads Drive Up Urban Rents

The Atlantic’s “CityLab” highlighted a working paper by Richard Green, of the USC Lusk Center, and colleagues on how the rise of more educated people with higher incomes in metropolitan areas has increased housing costs. Increased housing costs predominantly affect the less educated. Although Green found that a higher number of college graduates in an area raises incomes for everyone, a 1 percent increase in college grads leads to a roughly 2.5 percent increase in the cost of rent.