Housing Vouchers and the Price of Rental Housing

40 Pages Posted: 5 Sep 2012 Last revised: 28 Jun 2014

See all articles by Michael D. Eriksen

Michael D. Eriksen

University of Cincinnati - Department of Finance - Real Estate

Amanda Ross

University of Alabama - Culverhouse College of Commerce & Business Administration

Date Written: June 24, 2014

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.

Keywords: Housing Policy, In-Kind Transfers, Housing Supply, Vouchers

JEL Classification: H42, H53, R31, R38

Suggested Citation

Eriksen, Michael D. and Ross, Amanda, Housing Vouchers and the Price of Rental Housing (June 24, 2014). Available at SSRN: https://ssrn.com/abstract=2141483 or http://dx.doi.org/10.2139/ssrn.2141483

Michael D. Eriksen (Contact Author)

University of Cincinnati - Department of Finance - Real Estate ( email )

College of Business Administration
Cincinnati, OH 45221
United States

Amanda Ross

University of Alabama - Culverhouse College of Commerce & Business Administration ( email )

Culverhouse College of Business
Tuscaloosa, AL 35487-0223
United States

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