Economics · 12th Grade

Active learning ideas

Urban Economics: Housing and Gentrification

Housing and gentrification are highly personal topics for students, who may have seen these forces reshape their own communities. Active learning lets them investigate policies, data, and trade-offs in real time rather than memorizing abstract concepts. Role plays and mapping exercises give students a chance to test ideas, confront assumptions, and see the human consequences behind supply curves and zoning laws.

• Common Core State Standards
• C3: D2.Eco.4.9-12
• C3: D2.Geo.12.9-12

• 20–60 min
• Pairs → Whole Class
• 4 activities

Activity 01

• Role Play
• 60 min · Whole Class

Role Play: Zoning Board Public Hearing

Students are assigned stakeholder roles: existing homeowner, residential developer, renter, small business owner, city council member, and housing advocate. A proposal to rezone a neighborhood from single-family to mixed-use is presented, and a mock public hearing requires each stakeholder to make their case with specific economic arguments.

Explain how restrictive zoning laws contribute to housing unaffordability.

Facilitation Tip

During the Zoning Board Public Hearing, give each stakeholder role a one-page brief with clear incentives so students argue from evidence, not just opinions.

What to look for

Pose the following question to small groups: 'Imagine you are a city council member. A developer proposes a large apartment complex in a neighborhood with strict single-family zoning. What are the economic arguments for and against approving this project, considering housing supply, property values, and potential displacement?'

• Apply
• Analyze
• Evaluate
• Social Awareness
• Self-Awareness

Activity 02

• Problem-Based Learning
• 45 min · Small Groups

Mapping Analysis: Tracing Gentrification Over Time

Using provided neighborhood data or publicly available sources, students trace demographic and economic change in a specific US city over 20 years. They identify which neighborhoods changed most, correlate patterns with transit access and amenity investment, and discuss who benefited from appreciation and who was displaced.

Analyze the economic drivers and consequences of gentrification.

Facilitation Tip

During the Mapping Analysis, ask students to overlay demographic data on rent maps to see patterns of displacement before and after policy changes.

What to look for

Provide students with a short case study of a neighborhood experiencing gentrification. Ask them to identify two economic drivers and two economic consequences of this process, listing them on a half-sheet of paper.

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management
• Relationship Skills

Activity 03

• Problem-Based Learning
• 50 min · Small Groups

Cost-Benefit Comparison: Housing Policy Options

Groups each evaluate one housing policy: rent control, inclusionary zoning, upzoning, housing vouchers, or public housing construction. Using a structured cost-benefit framework, they assess effects on supply, affordability, fiscal impact, and equity. Results are posted and compared in a gallery walk.

Evaluate policy interventions aimed at addressing housing crises in urban areas.

Facilitation Tip

During the Cost-Benefit Comparison, provide a simple spreadsheet template so students quantify policy trade-offs using real rental and construction cost data.

What to look for

On an index card, have students complete the sentence: 'One policy that could address housing unaffordability is ______, because ______.' Encourage them to use vocabulary learned in the lesson.

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management
• Relationship Skills

Activity 04

• Think-Pair-Share
• 20 min · Pairs

Think-Pair-Share: Supply vs. Demand Solutions

Students categorize housing market interventions as primarily supply-side, demand-side, or regulatory reform, then evaluate which approach would most effectively address a specific city's housing challenge based on its particular characteristics.

Explain how restrictive zoning laws contribute to housing unaffordability.

Facilitation Tip

During the Think-Pair-Share, assign each pair one supply-side idea and one demand-side idea so they must explain mechanisms, not just list options.

What to look for

Pose the following question to small groups: 'Imagine you are a city council member. A developer proposes a large apartment complex in a neighborhood with strict single-family zoning. What are the economic arguments for and against approving this project, considering housing supply, property values, and potential displacement?'

• Understand
• Apply
• Analyze
• Self-Awareness
• Relationship Skills

A few notes on teaching this unit

Teachers approach this topic by balancing rigor with empathy. Use local case studies so students see how theory plays out in familiar places. Avoid framing gentrification as inherently good or bad; instead, focus on who gains, who loses, and why. Research shows that students retain economic reasoning better when they connect it to specific policies and outcomes they care about.

Successful learning looks like students connecting economic theory to policy outcomes and personal stories. They should be able to explain how zoning rules affect housing supply, track how neighborhood change impacts different groups, and evaluate policy trade-offs using evidence. Listen for language like 'rent control shifts supply to the right,' 'gentrification raises rents,' and 'zoning changes affect who can live where.'

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Watch Out for These Misconceptions

• During the Role Play: Zoning Board Public Hearing, watch for students who assume rent control always makes housing more affordable for everyone.

  During the Role Play: Zoning Board Public Hearing, give each stakeholder role a data sheet showing rent control’s long-term effects on supply. Ask landlords to present evidence on unit conversions and students to debate how rent control changes incentives for new construction.

• During the Mapping Analysis: Tracing Gentrification Over Time, watch for students who conclude gentrification always harms existing residents.

  During the Mapping Analysis: Tracing Gentrification Over Time, have students overlay homeownership data and eviction filings on rent maps. Ask them to compare outcomes for renters versus owners in gentrifying and non-gentrifying blocks.

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Methods used in this brief

• Role Play
• Problem-Based Learning
• Think-Pair-Share