Publications
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The Effects of Small Area Fair Market Rents on the Neighborhood Choices of Families with Children
This paper reports and extends the quantitative findings of the Small Area Fair Market Rent Demonstration Evaluation, focusing on the important subgroup of families with children. We test whether varying housing assistance subsidy caps with ZIP Code rent levels (that is, introducing Small Area Fair Market Rents or SAFMRs) increases the likelihood that voucher-holder families with children locate in higher opportunity neighborhoods, as proxied by poverty rates, the proficiency levels of local elementary schools, jobs proximity, and environmental hazards. Because of our focus on families with children, we pay particular attention to school proficiency levels and poverty rates. We estimate a difference-indifferences specification on a repeated cross-section of administrative data to estimate the effect of the introduction of SAFMRs in seven public housing agencies as compared to a large group of agencies that continued to operate under metro area FMRs. Five years after implementation, Small Area FMRs do not appear to affect overall move rates, but they meaningfully affect the locational outcomes among families with children who move. The share of such families settling in neighborhoods in the top quartile of our opportunity index measure increases by 11 percentage points (a 120-percent increase).
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Do Vouchers Protect Low-Income Households from Rising Rents?
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.
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Updating CRA Geography: It’s Not Just About Assessment Areas
In his recent paper, “Updating CRA Geography: It’s Not Just About Assessment Areas,” NYU Furman Center Senior Policy Fellow Mark A. Willis offers his suggestions on how to effectively modernize one crucial regulation authorized under the Community Reinvestment Act (CRA). Published by the Penn Institute for Urban Research, the paper proposes a method to evaluate the CRA performance of large retail internet banks.
The core of the proposal involves separately weighing a bank’s CRA activity both within its AA from its CRA activities beyond the AA, with the latter evaluation consisting of tests for both the bank’s retail products and community development activities to ensure they are meeting the needs of Low and Moderate Income Households. By combining these evaluations together, the paper asserts that banks will be more confident in their ability to get CRA credit for conducting CRA activities in areas of high need that may be outside their AA.
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Gentrification And The Health Of Low-Income Children In New York City
Although the pace of gentrification has accelerated in cities across the US, little is known about the health consequences of growing up in gentrifying neighborhoods. This study used New York State Medicaid claims data to track a cohort of low-income children born in the period 2006–08 for the nine years between January 2009 and December 2017. It compared the 2017 health outcomes of children who started out in low-income neighborhoods that gentrified in the period 2009–15 with those of children who started out in other low-income neighborhoods, controlling for individual child demographic characteristics, baseline neighborhood characteristics, and preexisting trends in neighborhood socioeconomic status.
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HUD’s Affirmatively Furthering Fair Housing Rule: A Contribution and Challenge to Equity Planning for Mixed Income Communities
“What Works to Promote Inclusive, Equitable Mixed-Income Communities” is the fifth volume in the Federal Reserve Bank of San Francisco’s What Works series. This essay by Faculty Director Katherine O'Regan and Distinguished Fellow Ken Zimmerman provides a brief background on the legal basis of HUD’s Affirmatively Furthering Fair Housing (AFFH) rule, explains the framework and theory behind the rule, and describes how a rule aimed at overcoming racial segregation can support the creation and preservation of mixed-income communities. The essay lay out key details of the rule and how they connect to more equitable and inclusive planning, and highlights potential connections and tensions for mixed-income strategies within the context of the rule. It then assesses the early experience of the AFFH approach, and the threat posed by HUD’s current suspension of the rule. The piece concludes with a discussion of implications for action (or at least attention) with respect to the rule, particularly with respect to mixed-income strategies.
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Has Falling Crime Invited Gentrification?
Since the early 1990s, central city crime has fallen dramatically in the United States. This study explores the extent to which this trend may have contributed to gentrification. Using confidential census microdata, the authors show that reductions in central city violent crime are associated with increases in the probability that high-income and college-educated households move into central city neighborhoods, including low-income neighborhoods, instead of the suburbs. The authors then use neighborhood-level crime and home purchase data for five major U.S. cities and find that falling neighborhood crime is associated with increasing numbers and shares of high-income movers to low-income central city neighborhoods.
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Does Gentrification Displace Poor Children? New Evidence from New York City Medicaid Data
This paper by Ingrid Gould Ellen, Sherry Glied, and Kacie Dragan examines gentrification’s impact on the displacement of low-income families. While many see this relationship as causal, existing quantitative evidence is lacking, partly due to limited data and challenges in measurement. This paper examines the relationship between the frequency and distance of low-income families’ residential moves, as well as the housing and neighborhood conditions in which they live. Using longitudinal New York City Medicaid records, the authors track the movement and compare the outcomes of low-income children from 2009 through 2015, a seven-year period in which the city experienced high levels of gentrification, distinguishing between children who move and those that remain in place.
Read the published version in Regional Science and Urban Economics >>
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Open Access School Climate and the Impact of Neighborhood Crime on Test Scores
Does school climate ameliorate or exacerbate the impact of neighborhood violent crime on test scores? Using administrative data from the New York City Department of Education and the New York City Police Department, this study finds that exposure to violence in the residential neighborhood and an unsafe climate at school lead to substantial test score losses in English language arts (ELA). Middle school students exposed to neighborhood violent crime before the ELA exam who attend schools perceived to be less safe or to have a weak sense of community score 0.06 and 0.03 standard deviations lower, respectively. The study finds the largest negative effects for boys and Hispanic students in the least safe schools, and no effect of neighborhood crime for students attending schools with better climates.
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Gentrification and Fair Housing: Does Gentrification Further Integration?
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.
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Housing and Educational Opportunity: Characteristics of Local Schools Near Families with Federal Housing Assistance
This report focuses on access to neighborhood elementary schools, highlighting disparities between families living in subsidized housing and those who do not. It describes the characteristics of the local public elementary schools to which children living in subsidized housing have access, including their student demographics, teacher characteristics and relative proficiency rates. The report shows that that families receiving all four major types of federal housing assistance lived near lower performing and higher poverty schools than other poor families with children as well as other renters with children.
