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Do Vouchers Protect Low-Income Households from Rising Rents?

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  • Ingrid Gould Ellen

    (New York University)

  • Gerard Torrats-Espinosa

    (Columbia University)

Abstract

Using restricted administrative data on the voucher program, we examine the experience of voucher holders in metropolitan areas with rising rents. While some of our models suggest that rising rents in metropolitan areas are associated with a slight increase in rent-to-income ratios among voucher holders, poor renters in general see significantly larger increases in rent-to-income ratios. We see little evidence that rising rents push voucher holders to worse neighborhoods, with voucher holders in central cities ending up in lower poverty neighborhoods as rents rise. It appears that vouchers may help low-income households remain in neighborhoods as they gentrify.

Suggested Citation

  • Ingrid Gould Ellen & Gerard Torrats-Espinosa, 2020. "Do Vouchers Protect Low-Income Households from Rising Rents?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(2), pages 260-281, April.
    • Handle: RePEc:pal:easeco:v:46:y:2020:i:2:d:10.1057_s41302-019-00159-y
    DOI: 10.1057/s41302-019-00159-y
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    References listed on IDEAS

    as
    1. Robert Collinson & Ingrid Gould Ellen & Jens Ludwig, 2015. "Low-Income Housing Policy," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 59-126, National Bureau of Economic Research, Inc.
    2. Ingrid Gould Ellen & Keren Mertens Horn & Amy Ellen Schwartz, 2016. "Why Don't Housing Choice Voucher Recipients Live Near Better Schools? Insights from Big Data," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(4), pages 884-905, September.
    3. Robert Collinson & Peter Ganong, 2018. "How Do Changes in Housing Voucher Design Affect Rent and Neighborhood Quality?," American Economic Journal: Economic Policy, American Economic Association, vol. 10(2), pages 62-89, May.
    4. Brian A. Jacob & Jens Ludwig, 2012. "The Effects of Housing Assistance on Labor Supply: Evidence from a Voucher Lottery," American Economic Review, American Economic Association, vol. 102(1), pages 272-304, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Housing vouchers; Rent; Rent burden; Neighborhood; Gentrification;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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