Urbanization, agglomeration economies, and access to mortgage credit

Stuart A. Gabriel, Stuart S. Rosenthal

Research output: Contribution to journalArticlepeer-review

20 Scopus citations


We examine the effect of urban agglomeration on access to mortgage credit using HMDA data from 1994 to 2008. Previous studies suggest that agglomeration should increase access to specialized workers and information, both of which should enhance liquidity in mortgage lending. Findings indicate that agglomeration economies increase mortgage origination rates and loan amounts in the 1990s, and especially so in higher risk locations. However, agglomeration effects dissipated over the study period. While we do not identify the microfoundations of these patterns, the decline in the influence of agglomeration coincides with the dramatic expansion of secondary mortgage markets and development of information technology, both of which should have reduced regional disparities in access to credit.

Original languageEnglish (US)
Pages (from-to)42-50
Number of pages9
JournalRegional Science and Urban Economics
Issue number1
StatePublished - Jan 2013


  • Agglomeration economies
  • Mortgage credit
  • Urbanization

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies


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