This report examines the link between income inequality and new housing construction in various metropolitan areas. Using data from the Census and Neighborhood Change Database on 215 metropolitan areas, the analysis compares trends between economically distressed metropolitan areas (those that experienced little or no population or economic growth) and non-distressed metropolitan areas. . . . Policymakers in economically distressed metropolitan areas who are concerned about the effects of overbuilding and income segregation—such as the decline of older cities and inner suburbs and the perpetuation of poverty—should be concerned about income inequality. Policies that reduce income inequality can help reduce overbuilding and income segregation in distressed areas.