In recent years, an emerging strand of research has focused on the role arrival neighbourhoods play for newcomers finding their footing in a new urban context. However, little is known about the underlying factors and drivers influencing their function(ing). This concerns in particular the role of the local housing market and its players in shaping their emergence and development. The paper deals with the question of how arrival neighbourhoods are (co-)produced by housing market players and how the latter are embedded in local governance structures. Looking at three German arrival neighbourhoods, the article illustrates how they are co-produced by ownership structures and the allocation practices of different housing market players. However, the strengthening of an arrival neighbourhood´s function not only depends on ownership structures but also on the capacities of municipal housing providers and civil society organisations, their strategic goals and the will for (concerted) action. Our findings show that arrival neighbourhoods can take on an important citywide function, enabling newcomers to gain a foothold in the city if three criteria are met: they are accessible/affordable for low-income groups, are equipped with infrastructures for newcomers, and are permeable with regard to residents’ relocation to other neighbourhoods.
