Publications

  • Research Area: Economic Development ×
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  • The External Effects of Place-Based Subsidized Housing

    This study examines the external effects of subsidized housing built in New York City during the late 1980s and 1990s. The paper finds significant and sustained benefits to the surrounding neighborhood. Neighborhood benefits increase with project size and decrease with distance from the project sites. A simple cost-benefit analysis suggests that New York City’s housing investments delivered a tax benefit to the city that exceeded the cost of the city subsidies provided.

  • The Impact of Subsidized Housing Investment on New York City’s Neighborhoods

    The contemporary assumption is that the production of subsidized housing, if anything, accelerates neighborhood decline – “there goes the neighborhood” is the common refrain.  Partially as a result, we’ve seen the policy pendulum swing away from place-based housing investment towards demand-side housing programs, such as housing vouchers. Through multiple studies, the Furman Center has consistently found significant, positive impacts from subsidized housing investment, suggesting that publicly-funded housing investments aimed at distressed urban properties can deliver significant benefits to the surrounding community.

  • The Role of Cities in Providing Housing Assistance: A New York Perspective

    In recent years, the federal government has increasingly relied upon states and cities to create and administer social policy. This paper examines available theory and evidence regarding the appropriate role of different levels of government, focusing in particular on the role of cities. Exploring the case of New York City, the paper also offers new empirical evidence on the extent to which investments in affordable housing can help to eliminate externalities and rebuild inner city communities. The authors conclude that although cities should play a major role in administering housing programs, they should only fund them under a limited set of circumstances. Redistribution of income, a major objective of most housing subsidy programs, should generally be paid for by the federal government, not cities. In contrast, cities should consider funding housing production programs when they are part of a comprehensive strategy either to remove negative externalities or to generate positive spillovers. The authors' empirical analysis of New York City's investment in new housing suggests that housing programs can generate significant external benefits to their neighborhoods. Thus, the results point to a potentially important role for cities, based upon the spillover effects of housing construction and rehabilitation in distressed neighborhoods.

  • Underused Lots in New York City

    Despite a robust real estate market for most of this decade, researchers and policymakers have observed that many areas of New York City have remained built out well below their zoning capacity. This study aims to contribute to our understanding of urban redevelopment by compiling and analyzing a large database of underdeveloped lots in the City. We identify about 200,000 such lots as of 2003 that were built out at less than 50% of their zoning capacity, representing about a quarter of all residentially zoned lots. Of these, about 8% were redeveloped during the subsequent four years. Our preliminary analysis reveals that underdeveloped lots are primarily made up of low density 1-4 family houses and are disproportionately located in poor and minority neighborhoods. We plan to use this analysis as the foundation for further analysis to assess whether market failures and regulatory and other barriers impede desirable development in mature cities.

  • Welcome to the Neighborhood: What can Regional Science Contribute to the Study of Neighborhoods?

    In this paper the authors argue that neighborhoods are highly relevant for the types of issues at the heart of regional science. First, residential and economic activity takes place in particular locations, and particular neighborhoods. Many attributes of those neighborhood environments matter for this activity, from the physical amenities, to the quality of the public and private services received. Second, those neighborhoods vary in their placement in the larger region and this broader arrangement of neighborhoods is particularly important for location choices, commuting behavior and travel patterns. Third, sorting across these neighborhoods by race and income may well matter for educational and labor market outcomes, important components of a region's overall economic activity. For each of these areas we suggest a series of unanswered questions that would benefit from more attention. Focused on neighborhood characteristics themselves, there are important gaps in our understanding of how neighborhoods change - the causes and the consequences. In terms of the overall pattern of neighborhoods and resulting commuting patterns, this connects directly to current concerns about environmental sustainability and there is much need for research relevant to policy makers. And in terms of segregation and sorting across neighborhoods, work is needed on better spatial measures. In addition, housing market causes and consequences for local economic activity are under researched. The authors expand on each of these, finishing with some suggestions on how newly available data, with improved spatial identifiers, may enable regional scientists to answer some of these research questions.

  • What do Business Improvement Districts do for Property Owners?

    The article explores on the impact of business improvement districts (BIDS) to property owners in New York City. The scheme is essential to private local governments through the businesses' pay fees to supplement the package of public services in their local area. By using difference-in-difference (DD) hedonic modeling approach, one can estimate changes in property values in BID areas compared to those non-BID areas.

  • What Do We Know About Housing Choice Vouchers?

    Four decades after its creation, the Housing Choice Voucher Program is the largest low-income housing subsidy program managed by the Department of Housing and Urban Development (HUD). This literature review covers what we know and don’t know about the Housing Choice Voucher Program. 

    Research shows that vouchers reduce the rent burdens of low-income households, allow them to live in less crowded homes, and help them to avoid homelessness. The program has been less successful, however, in getting recipients to better neighborhoods and schools, and perhaps the greatest disappointment of the program is its limited reach. Families wait for years in most places to receive a voucher, and only one in four households eligible for a voucher nationally receives any federal housing assistance. Further, a significant minority of households who receive vouchers never use them, in part because of the difficulty of finding willing landlords with acceptable units. Thus, as effective as the program is, there is still much to learn about its operation and how we might improve it.