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Housing Vouchers and the Price of Rental Housing

Author

Listed:
  • Michael D. Eriksen

    (Texas Tech University, Rawls College of Business)

  • Amanda Ross

    (West Virginia University, College of Business and Economics)

Abstract

We estimate the effect of increasing the supply of housing vouchers on rents using a panel of housing units in the American Housing Survey. We do not find that an increase in vouchers affected the overall price of rental housing, but do estimate differences in effects based on an individual unit's rent before the voucher expansion. Our results are consistent with voucher recipients renting more expensive units after receiving the subsidy. We also find that the largest price increases were for units near the maximum allowable voucher rent in cities with an inelastic housing supply.

Suggested Citation

  • Michael D. Eriksen & Amanda Ross, 2014. "Housing Vouchers and the Price of Rental Housing," Working Papers 14-15, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:14-15
    as

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    More about this item

    Keywords

    Housing Policy; In-Kind Transfers; Vouchers;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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