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Public Housing, Waiting lists and Lotteries

Author

Listed:
  • Arno Van der Vlist
  • Jos Van Ommeren

Abstract

We examine welfare outcomes for non-market allocation mechanisms of public housing. We make use of a quasi-natural experiment in Amsterdam where public houses are allocated through lotteries to households already on waiting lists. We demonstrate that a lottery reduces waiting time by 8.5 years and offers benefits to lottery winners. Households in public housing value these benefits at about €875 per year. We demonstrate that the lottery experiment resulted in different – and less efficient – household and public housing matches than those based on waiting time. Using a structural approach, the annual welfare loss associated with lottery due to an inefficient match is estimated to be €275 for each public house. JEL: C78 D82 R21 R31.

Suggested Citation

  • Arno Van der Vlist & Jos Van Ommeren, 2019. "Public Housing, Waiting lists and Lotteries," ERES eres2019_330, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2019_330
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    More about this item

    Keywords

    Affordable Housing; lotteries; Public Housing; waiting lists;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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