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Low‐Income Housing Development, Poverty Concentration, and Neighborhood Inequality

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  • Matthew Freedman
  • Tamara McGavock

Abstract

Considerable debate exists about the merits of place‐based programs that steer new development, and particularly affordable housing development, into low‐income neighborhoods. Exploiting quasi‐experimental variation in incentives to construct and rehabilitate rental housing across neighborhoods generated by Low‐Income Housing Tax Credit (LIHTC) program rules, we explore the impacts of subsidized development on local housing construction, poverty concentration, and neighborhood inequality. While a large fraction of rental housing development spurred by the program is offset by a reduction in the number of new unsubsidized units, housing investment under the LIHTC has measurable effects on the distribution of income within and across communities. However, there is little evidence the program contributes meaningfully to poverty concentration or residential segregation.

Suggested Citation

  • Matthew Freedman & Tamara McGavock, 2015. "Low‐Income Housing Development, Poverty Concentration, and Neighborhood Inequality," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 34(4), pages 805-834, September.
    • Handle: RePEc:wly:jpamgt:v:34:y:2015:i:4:p:805-834
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    File URL: http://hdl.handle.net/10.1002/pam.21856
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    Citations

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    Cited by:

    1. Deepak Saraswat, 2022. "Labor Market Impacts of Exposure to Affordable Housing Supply: Evidence from the Low-Income Housing Tax Credit Program," Working papers 2022-09, University of Connecticut, Department of Economics.
    2. Ellen, Ingrid G. & Horn, Keren M. & O'Regan, Katherine M., 2016. "Poverty concentration and the Low Income Housing Tax Credit: Effects of siting and tenant composition," Journal of Housing Economics, Elsevier, vol. 34(C), pages 49-59.
    3. Cody Cook & Pearl Z. Li & Ariel J. Binder, 2023. "Where to Build Affordable Housing? Evaluating the Tradeoffs of Location," Working Papers 23-62, Center for Economic Studies, U.S. Census Bureau.
    4. Ports, Katie A. & Rostad, Whitney L. & Luo, Feijun & Putnam, Michelle & Zurick, Elizabeth, 2018. "The impact of the low-income housing tax credit on children's health and wellbeing in Georgia," Children and Youth Services Review, Elsevier, vol. 93(C), pages 390-396.
    5. Pathak, Rahul & Wyczalkowski, Christopher K. & Huang, Xi, 2017. "Public transit access and the changing spatial distribution of poverty," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 198-212.
    6. Yuan Li & Xin Feng, 2024. "Is Poverty Concentrated in Shanghai? Spatial Patterns in Social Housing and Their Implications for Social Equality in Chinese Cities," Sustainability, MDPI, vol. 16(5), pages 1-19, February.
    7. Bartalotti, Otávio C. & Brummet, Quentin O., 2016. "Regression Discontinuity Designs with Clustered Data: Variance and Bandwidth Choice," Staff General Research Papers Archive 3393, Iowa State University, Department of Economics.
    8. Boarnet, Marlon G & Bostic, Raphael & Williams, Danielle & Santiago-Bartolomei, Raul & Rodnyansky, Seva & Eisenlohr, Andy, 2017. "Affordable Housing in Transit-Oriented Developments: Impacts on Driving and Policy Approaches," Institute of Transportation Studies, Working Paper Series qt487994z4, Institute of Transportation Studies, UC Davis.
    9. Otávio Bartalotti & Quentin Brummet, 2015. "Estimation and Inference in Regression Discontinuity Designs with Clustered Sampling," CARRA Working Papers 2015-06, Center for Economic Studies, U.S. Census Bureau.
    10. Robert Clifford & Osborne Jackson, 2015. "Can subsidized housing help address homelessness in New England?," New England Public Policy Center Research Report 15-3, Federal Reserve Bank of Boston.
    11. Daniel H. Weinberg, 2016. "Changes in Neighborhood Inequality, 2000-2010," Working Papers 16-18, Center for Economic Studies, U.S. Census Bureau.
    12. Osborne Jackson & Laura Kawano, 2015. "Do increases in subsidized housing reduce the incidence of homelessness?: evidence from the low-income housing tax credit," Working Papers 15-11, Federal Reserve Bank of Boston.

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