What does filtering refer to in housing contexts?

In housing contexts, filtering refers to the process by which new, often more expensive housing becomes available, leading to older, less expensive housing becoming more accessible to lower-income households. This happens as wealthier residents move into newly developed properties, which can stretch their budgets but offer more amenities or desirable locations. The original residents, who may have occupied older, more affordable housing, may relocate to find housing that still suits their financial capability, allowing lower-income families or individuals to occupy those units that have now become less desirable due to age or condition.

This dynamic illustrates how the housing market operates over time, showcasing a natural progression where older homes can become more affordable as demand shifts toward newer developments. Filtering can be a critical factor in discussions about housing affordability and availability in urban areas, highlighting the interplay between different economic groups within the real estate market.