Do Low-Income Housing Subsidies Increase Housing Consumption?
A necessary condition for justifying a policy such as publicly provided or subsidized low-income housing is that it has a real effect on recipients' outcomes. In this paper, we examine one aspect of the real effect of public or subsidized housing -- does it increase the housing stock? If subsidized housing raises the quantity of occupied housing per capita, either more people are finding housing or they are being housed less densely. On the other hand, if public or subsidized housing merely crowds out equivalent-quality low-income housing that otherwise would have been provided by the private sector, the housing policy may have little real effect on housing consumption. Using Census place-level data from the decennial census and from the Department of Housing and Urban Development, we ask whether places with more public and subsidized housing also have more total housing, after accounting for housing demand. We find that government-financed units raise the total number of units in a Census place, although on average three government-subsidized units displace two units that would otherwise have been provided by the private market. There is less crowd out in more populous markets, and more crowd out in places where there is less excess demand for public housing, as measured by the number of government-financed units per eligible person. Tenant-based housing programs, such as Section 8 Certificates and Vouchers, seem to be more effective than project-based programs at targeting subsidized housing units to people who otherwise would not have their own.
|Date of creation:||Jan 2002|
|Date of revision:|
|Publication status:||published as Sinai, Todd and Joel Waldfogel. "Do Low-Income Housing Subsidies Increase The Occupied Housing Stock?," Journal of Public Economics, 2005, v89(11-12,Dec), 2137-2164.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Berry, Steven T. & Waldfogel, Joel, 1999.
"Public radio in the United States: does it correct market failure or cannibalize commercial stations?,"
Journal of Public Economics,
Elsevier, vol. 71(2), pages 189-211, February.
- Steven T. Berry & Joel Waldfogel, 1997. "Public Radio in the United States: Does It Correct Market Failure or Cannibalize Commercial Stations?," NBER Working Papers 6057, National Bureau of Economic Research, Inc.
- Quigley, John M., 2002. "A Decent Home: Housing Policy in Perspective," Berkeley Program on Housing and Urban Policy, Working Paper Series qt8f57x42q, Berkeley Program on Housing and Urban Policy.
- Nichols, Albert L & Zeckhauser, Richard J, 1982. "Targeting Transfers through Restrictions on Recipients," American Economic Review, American Economic Association, vol. 72(2), pages 372-77, May.
- Janet Currie & Aaron Yelowitz, 1997.
"Are Public Housing Projects Good for Kids?,"
NBER Working Papers
6305, National Bureau of Economic Research, Inc.
- J. Currie & A. Yelowitz, . "Are Public Housing Projects Good For Kids?," Institute for Research on Poverty Discussion Papers 1152-97, University of Wisconsin Institute for Research on Poverty.
- Reeder, William J., 1985. "The benefits and costs of the section 8 existing housing program," Journal of Public Economics, Elsevier, vol. 26(3), pages 349-377, April.
- Olsen, Edgar O. & Barton, David M., 1983. "The benefits and costs of public housing in New York City," Journal of Public Economics, Elsevier, vol. 20(3), pages 299-332, April.
- David M. Cutler & Jonathan Gruber, 1996. "Does Public Insurance Crowd out Private Insurance?," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 391-430.
- Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2000.
"Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment,"
NBER Working Papers
7973, National Bureau of Economic Research, Inc.
- Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2001. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 607-654.
- Lawrence Katz & B. Jeffrey Liebman, 2000. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," Working Papers 820, Princeton University, Department of Economics, Industrial Relations Section..
- James M. Poterba, 1994. "Public Policy and Housing in the United States," NBER Chapters, in: Housing Markets in the United States and Japan, pages 239-256 National Bureau of Economic Research, Inc.
- Edgar O. Olsen, 2000. "The Cost-Effectiveness of Alternative Methods of Delivering Housing Subsidies," Virginia Economics Online Papers 351, University of Virginia, Department of Economics.
- Painter, Gary, 1997. "Does Variation in Public Housing Waiting Lists Induce Intra-Urban Mobility?," Journal of Housing Economics, Elsevier, vol. 6(3), pages 248-276, September.
- Edgar O. Olsen, 2001.
"Housing Programs for Low-Income Households,"
NBER Working Papers
8208, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:8709. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.