Using restricted administrative data on the voucher program, we examine the experience of voucher holders in metropolitan areas with rising rents. While some of our models suggest that rising rents in metropolitan areas are associated with a slight increase in rent-to-income ratios among voucher holders, poor renters in general see significantly larger increases in rent-to-income ratios. We see little evidence that rising rents push voucher holders to worse neighborhoods, with voucher holders in central cities ending up in lower-poverty neighborhoods as rents rise. It appears that vouchers may help low-income households remain in neighborhoods as they gentrify.
This paper explores the long-term trajectory of predominantly minority, low-income neighborhoods that gentrified over the 1980s and 1990s. On average, these neighborhoods experienced little racial change while they gentrified, but a significant minority became racially integrated during the decade of gentrification, and over the longer term, many of these neighborhoods remained racially stable. That said, some gentrifying neighborhoods that were predominantly minority in 1980 appeared to be on the path to becoming predominantly white. Policies, such as investments in place-based, subsidized housing, are needed in many gentrifying neighborhoods to ensure racial and economic diversity over the longer term.
Neighbors and networks: The role of social interactions on the residential choices of housing choice voucher holders
This study considers the role of information and social influence in determining the effective set of potential housing choices for participants in the Housing Choice Voucher Program. It finds that pairs of voucher participants in close proximity are 40% more likely to move to the same neighborhood than pairs that live more than 1,000 feet apart, and that the neighborhoods selected by close proximity pairs are likely to be more economically disadvantaged by several measures. These findings were magnified in tight rental markets, and in highly segregated cities.