Thursday, April 24, 2025

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New Algorithms Aim for Fair Urban Renewal Housing Allocation

Algorithms for fair allocation of new units in urban renewal projects

From Arxiv Original Article

Urban renewal projects often face disputes over fair allocation of new housing units to original homeowners. This research develops algorithms to ensure envy-free distribution of new apartments based on the value of old units.

Why it matters: Fair allocation algorithms can resolve conflicts in rebuild-and-divide projects, enabling smoother urban renewal.

The big picture: Three fairness models address envy based on relative gains, total envy limits, and proportional value of old units.

Stunning stat: The Envy Sum Model mechanism minimizes total envy but can be strategically manipulated under certain conditions.

The stakes: Without fair allocation, rebuild-and-divide projects risk delays or failure due to homeowner dissatisfaction and disputes.