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Amenities, affordability, and housing vouchers

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  • David S. Bieri
  • Casey J. Dawkins

Abstract

Against the background of an emerging rental affordability crisis, we examine how the standard rule that households should not spend more than 30% of their income on housing expenditures leads to inefficiencies in the context of federal low‐income housing policy. We quantify how the current practice of locally indexing individual rent subsidies in the Housing Choice Voucher (HCV) program regardless of quality‐of‐life conditions implicitly incentivizes recipients to live in high‐amenity areas. We also assess a novel scenario for housing policy reform that adjusts subsidies by the amenity expenditures of low‐income households, permitting national HCV program coverage to increase.

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  • David S. Bieri & Casey J. Dawkins, 2019. "Amenities, affordability, and housing vouchers," Journal of Regional Science, Wiley Blackwell, vol. 59(1), pages 56-82, January.
    • Handle: RePEc:bla:jregsc:v:59:y:2019:i:1:p:56-82
    DOI: 10.1111/jors.12400
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    Cited by:

    1. Molloy, Raven & Nathanson, Charles G. & Paciorek, Andrew, 2022. "Housing supply and affordability: Evidence from rents, housing consumption and household location," Journal of Urban Economics, Elsevier, vol. 129(C).
    2. David S. Bieri & Casey J. Dawkins, 2016. "Quality of Life, Transportation Costs, and Federal Housing Assistance: Leveling the Playing Field," Housing Policy Debate, Taylor & Francis Journals, vol. 26(4-5), pages 646-669, September.
    3. Raven S. Molloy & Charles G. Nathanson & Andrew D. Paciorek, 2020. "Housing Supply and Affordability: Evidence from Rents, Housing Consumption and Household Location," Finance and Economics Discussion Series 2020-044, Board of Governors of the Federal Reserve System (U.S.).

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