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Housing affordability: recommendations for new research to guide policy

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  • Jane K. Dokko

Abstract

This article highlights areas where economic research is needed to guide federal policymakers addressing the challenge of improving housing affordability. The author places these research recommendations in the framework of five key issues, reflecting policymakers? need to identify a rationale for government action; to employ a single, clear measure to gauge affordability; to understand the unintended consequences of current housing policies; to ensure that the political environment is considered when developing policy; and to decide whether to use housing finance reform as a means of achieving housing affordability. New research in these areas would reduce uncertainty in policy design choices, strengthen the evidence base on effective policy interventions, help policymakers evaluate risks, and make salient the trade-offs between different policy objectives.

Suggested Citation

  • Jane K. Dokko, 2018. "Housing affordability: recommendations for new research to guide policy," Economic Policy Review, Federal Reserve Bank of New York, issue 24-3, pages 138-144.
    • Handle: RePEc:fip:fednep:00058
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    References listed on IDEAS

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    3. Davis, Morris A. & Oliner, Stephen D. & Peter, Tobias J. & Pinto, Edward J., 2020. "The Impact of Federal Housing Policy on Housing Demand and Homeownership: Evidence from a Quasi-Experiment," Journal of Housing Economics, Elsevier, vol. 48(C).
    4. Quigley, John M. & Rosenthal, Larry A., 2005. "The Effects of Land-Use Regulation on the Price of Housing: What Do We Know? What Can We Learn?," Berkeley Program on Housing and Urban Policy, Working Paper Series qt90m9g90w, Berkeley Program on Housing and Urban Policy.
    5. Baum-Snow, Nathaniel & Marion, Justin, 2009. "The effects of low income housing tax credit developments on neighborhoods," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 654-666, June.
    6. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    7. 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.
    8. Susin, Scott, 2002. "Rent vouchers and the price of low-income housing," Journal of Public Economics, Elsevier, vol. 83(1), pages 109-152, January.
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    Cited by:

    1. Tiznado-Aitken, Ignacio & Lucas, Karen & Muñoz, Juan Carlos & Hurtubia, Ricardo, 2022. "Freedom of choice? Social and spatial disparities on combined housing and transport affordability," Transport Policy, Elsevier, vol. 122(C), pages 39-53.
    2. Rose, Jonathan, 2021. "Short-term residential mortgage contracts in American economic history," Explorations in Economic History, Elsevier, vol. 79(C).
    3. W. Scott Frame & Joseph Tracy, 2018. "Introduction to Special Issue: The Appropriate Role of Government in U.S. Mortgage Markets," Economic Policy Review, Federal Reserve Bank of New York, issue 24-3, pages 1-10.

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    More about this item

    Keywords

    housing; public policy; affordability;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • H1 - Public Economics - - Structure and Scope of Government
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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