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Housing Vouchers and the Price of Rental Housing

Author

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  • 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
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    References listed on IDEAS

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    9. Finkelstein, Amy, 2002. "The effect of tax subsidies to employer-provided supplementary health insurance: evidence from Canada," Journal of Public Economics, Elsevier, vol. 84(3), pages 305-339, June.
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    Cited by:

    1. Margaret Triyana, 2016. "Do Health Care Providers Respond to Demand-Side Incentives? Evidence from Indonesia," American Economic Journal: Economic Policy, American Economic Association, vol. 8(4), pages 255-288, November.
    2. Essi Eerola & Tuukka Saarimaa, 2017. "Delivering Affordable Housing and Neighborhood Quality: A Comparison of Place- and Tenant-Based Programs," CESifo Working Paper Series 6674, CESifo Group Munich.
    3. Essi Eerola & Teemu Lyytikäinen, 2017. "Housing Allowance and Rents: Evidence from a Stepwise Subsidy Scheme," SERC Discussion Papers 0220, Spatial Economics Research Centre, LSE.
    4. Dean Hyslop & David Rea, 2018. "Do housing allowances increase rents? Evidence from a discrete policy change," Working Papers 18_10, Motu Economic and Public Policy Research.
    5. Eva M. Berger & Felix Schmidt, 2017. "Unburden Renters by Making Landlords Pay the Commission? Evaluating a Policy Reform in Germany," Working Papers 1716, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.

    More about this item

    Keywords

    Housing Policy; In-Kind Transfers; Vouchers;

    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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