Economic Impacts of Subsidized Housing Location
42 Pages Posted: 1 May 1998
Date Written: January 13, 1998
Programs such as HUD's Moving to Opportunity are examples of an increased emphasis on use of Section 8 certificates and vouchers for acquisition of market-rate subsidized housing in place of traditional public housing. Research on the social impacts of family relocation from public housing in the inner city to market-rate housing in integrated neighborhoods have indicated favorable results. However, little research has been done on the economic impacts of such a move using standard microeconomic framework.
In this paper, the short-term economic effects upon various groups of a low-income family's hypothetical move from public housing to Section 8 rental housing are evaluated. We hypothesize a spatial character for these impacts, and a bias in benefits calculation due to the economic diversity of a large metropolitan area. Our model is implemented using data from the Chicago region. Preliminary results support our hypotheses, and indicate that there is a potential tradeoff between tenant benefits, housing subsidies from society and housing integration.
JEL Classification: H42, I38, R21, R31, R53
Suggested Citation: Suggested Citation