Who Wants Affordable Housing in their Backyard? An Equilibrium Analysis of Low Income Property Development / Rebecca Diamond, Timothy McQuade.

Format:

Book

Author/Creator:

Diamond, Rebecca.

Contributor:

National Bureau of Economic Research.

McQuade, Timothy.

Series:

Working Paper Series (National Bureau of Economic Research) no. w22204.

NBER working paper series no. w22204

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2016.

Summary:

We nonparametrically estimate spillovers of properties financed by the Low Income Housing Tax Credit (LIHTC) onto neighborhood residents by developing a new difference-in-differences style estimator. LIHTC development revitalizes low-income neighborhoods, increasing house prices 6.5%, lowering crime rates, and attracting racially and income diverse populations. LIHTC development in higher income areas causes house price declines of 2.5% and attracts lower income households. Linking these price effects to a hedonic model of preferences, LIHTC developments in low-income areas cause aggregate welfare benefits of $116 million. Affordable housing development acts like a place-based policy and can revitalize low-income communities.

Notes:

Print version record

April 2016.