IDEAS home Printed from https://ideas.repec.org/a/eee/jhouse/v23y2014icp1-16.html
   My bibliography  Save this article

Will they stay or will they go: Predicting subsidized housing opt-outs

Author

Listed:
  • Reina, Vincent
  • Begley, Jaclene

Abstract

Over the past 30years, the share of renters in the United States spending over 30% of their income on rent, and thereby qualifying as rent burdened, has increased. This trend has particularly affected low-income families. At the same time, owners of thousands of privately owned, publicly subsidized rental housing units have left, or “opted out,” of subsidy programs across the country. The efforts of local governments to preserve these properties as affordable housing are handicapped by a lack of understanding of the underlying factors that drive owners’ decisions to opt out. This paper employs a unique dataset on subsidized properties in New York City and uses hazard models to explore why property owners in the Mitchell-Lama program, a New York State affordable housing program, choose to opt out. Our results suggest that properties located in neighborhoods with high property value growth, those with for-profit owners, and those past the affordability restrictions on all subsidies, are more likely to opt out. While our study focuses on Mitchell-Lama properties, the findings have broader implications for properties around the country that receive supply-side rental subsidies.

Suggested Citation

  • Reina, Vincent & Begley, Jaclene, 2014. "Will they stay or will they go: Predicting subsidized housing opt-outs," Journal of Housing Economics, Elsevier, vol. 23(C), pages 1-16.
    • Handle: RePEc:eee:jhouse:v:23:y:2014:i:c:p:1-16
    DOI: 10.1016/j.jhe.2013.11.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1051137713000569
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jhe.2013.11.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John M. Quigley & Steven Raphael, 2004. "Is Housing Unaffordable? Why Isn't It More Affordable?," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 191-214, Winter.
    2. Leung, Charles Ka Yui & Sarpça, Sinan & Yilmaz, Kuzey, 2012. "Public housing units vs. housing vouchers: Accessibility, local public goods, and welfare," Journal of Housing Economics, Elsevier, vol. 21(4), pages 310-321.
    3. Cameron,A. Colin & Trivedi,Pravin K., 2008. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9787111235767, January.
    4. Schwartz, Amy Ellen & Ellen, Ingrid Gould & Voicu, Ioan & Schill, Michael H., 2006. "The external effects of place-based subsidized housing," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 679-707, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Vincent J Reina & Ben Winter, 2019. "Safety net? The use of vouchers when a place-based rental subsidy ends," Urban Studies, Urban Studies Journal Limited, vol. 56(10), pages 2092-2111, August.
    3. Alasdair Reid, 2023. "Closing the Affordable Housing Gap: Identifying the Barriers Hindering the Sustainable Design and Construction of Affordable Homes," Sustainability, MDPI, vol. 15(11), pages 1-27, May.
    4. Bostic, Raphael & Ellen, Ingrid Gould, 2014. "Introduction: Special issue on housing policy in the United States," Journal of Housing Economics, Elsevier, vol. 24(C), pages 1-3.
    5. Kathryn Howell, 2018. "Neighbourhoods, local networks and the non-linear path of the expiration and preservation of federal rental subsidies," Urban Studies, Urban Studies Journal Limited, vol. 55(14), pages 3092-3109, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reina, Vincent & Begley, Jaclene, 2014. "Reprint of “Will They Stay or Will They Go: Predicting Subsidized Housing Opt-Outs”," Journal of Housing Economics, Elsevier, vol. 24(C), pages 122-137.
    2. Koster, Hans R.A. & van Ommeren, Jos & Volkhausen, Nicolas, 2021. "Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles," Journal of Urban Economics, Elsevier, vol. 124(C).
    3. Brian Asquith & Evan Mast & Davin Reed, 2019. "Supply Shock Versus Demand Shock: The Local Effects of New Housing in Low-Income Areas," Upjohn Working Papers 19-316, W.E. Upjohn Institute for Employment Research.
    4. 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.
    5. Vieira, Flávio & MacDonald, Ronald & Damasceno, Aderbal, 2012. "The role of institutions in cross-section income and panel data growth models: A deeper investigation on the weakness and proliferation of instruments," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 127-140.
    6. 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.
    7. Charles Ka Yui Leung & Joe Cho Yiu Ng, 2018. "Macro Aspects of Housing," GRU Working Paper Series GRU_2018_016, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    8. Charles Ka Yui Leung & Joe Cho Yiu Ng & Edward Tang, 2020. "Why is the Hong Kong Housing Market Unaffordable? Some Stylized Facts and Estimations," Globalization Institute Working Papers 380, Federal Reserve Bank of Dallas.
    9. Sadayuki, Taisuke, 2018. "Measuring the spatial effect of multiple sites: An application to housing rent and public transportation in Tokyo, Japan," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 155-173.
    10. Riccardo Crescenzi & Carlo Pietrobelli & Roberta Rabellotti, 2012. "Innovation Drivers, Value Chains and the Geography of Multinational Firms in European Regions," LEQS – LSE 'Europe in Question' Discussion Paper Series 53, European Institute, LSE.
    11. Pfarr, Christian & Schmid, Andreas, 2013. "The political economics of social health insurance: the tricky case of individuals’ preferences," MPRA Paper 44534, University Library of Munich, Germany.
    12. Teresa Backhaus & Kathrin Gebers & Carsten Schröder, 2015. "Evolution and Determinants of Rent Burdens in Germany," SOEPpapers on Multidisciplinary Panel Data Research 806, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. John Landis & Vincent J. Reina, 2021. "Do Restrictive Land Use Regulations Make Housing More Expensive Everywhere?," Economic Development Quarterly, , vol. 35(4), pages 305-324, November.
    14. Amitrajeet A. Batabyal & Peter Nijkamp, 2020. "Workplace choice, commuting costs, and wage taxation in urban and adjacent rural regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 775-786, December.
    15. Livy, Mitchell R., 2018. "Intra-school district capitalization of property tax rates," Journal of Housing Economics, Elsevier, vol. 41(C), pages 227-236.
    16. Chen, Jie & Nong, Huifu, 2016. "The heterogeneity of market supply effects of public housing provision: Empirical evidence from China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 115-127.
    17. Benoît Schmutz, 2012. "Public Housing Quotas and Segregation," AMSE Working Papers 1228, Aix-Marseille School of Economics, France.
    18. Wei Wang & Yuzhe Wu, 2020. "Exploring the Coordination Mechanism for Public Housing Supply with Urban Growth Management: A Case Study of Chongqing, China," Sustainability, MDPI, vol. 12(10), pages 1-16, May.
    19. JÓzsef Hegedüs & Natalia Rogozhina & Eszter Somogyi & Raymond Struyk & Andrey Tumanov, 2004. "Potential Effects Of Subsidy Programmes On Housing Affordability: The Cases Of Budapest And Moscow," European Journal of Housing Policy, Taylor and Francis Journals, vol. 4(2), pages 151-184.
    20. Shen, Ling, 2012. "Are house prices too high in China?," China Economic Review, Elsevier, vol. 23(4), pages 1206-1210.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jhouse:v:23:y:2014:i:c:p:1-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622881 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.