Publications
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Black and Latino Segregation and Socioeconomic Outcomes
Latinos seem to be inheriting the segregated urban structures experienced by African Americans and, to a similar extent, the diminished social and economic outcomes associated with segregation. This brief examines the relationships between metropolitan segregation levels and socioeconomic outcomes for Latinos and African Americans and explores mechanisms to explain these relationships. It finds that in more segregated metropolitan areas, both native-born Latinos and African Americans are significantly less likely compared with whites to graduate from high school and college, are more likely than whites to be neither working nor in school. Additionally, higher levels of segregation are associated with dramatic reductions in earnings for both African Americans and Latinos relative to whites. The research brief summarizes the findings of the article, Desvinculado y Desigual: Is Segregation Harmful to Latinos? (PDF), which was published in the July 2015 edition of The Annals of the American Academy of Political and Social Science. See the press release or read the key findings.
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Desvinculado y Desigual: Is Segregation Harmful to Latinos?
Despite the high levels of metropolitan area segregation experienced by Latinos, there is a lack of research examining the effects of segregation on Latino socio-economic outcomes and whether those effects differ from the negative effects documented for African Americans. The authors find that segregation is consistently associated with lower levels of educational attainment and labor market success for both African-American and Latino young adults compared to whites, with associations of similar magnitudes for both groups. One mechanism through which segregation may influence outcomes is the difference in the levels of neighborhood human capital to which whites, Latinos, and African Americans are exposed. The authors find that higher levels of segregation are associated with lower black and Latino neighborhood exposure to residents with college degrees, relative to whites. They also find support for other commonly-discussed mechanisms, such as exposure to neighborhood violent crime and the relative proficiency of the closest public school.
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Utility Allowances in Federally Subsidized Multifamily Housing
This paper provides an analysis of the statutes, regulations, and guidance that govern the treatment of utility costs in the four largest federal subsidized housing programs—Public Housing, Project-Based Section 8, Housing Choice Vouchers, and Low-Income Housing Tax Credits—and the incentives these rules create for the consumption of utilities. It finds that many of these programs are structured such that tenants and owners are either indifferent about utility costs or are rewarded for overconsumption. This paper makes several recommendation for how these programs can be restructured to incentivize lower utility consumption, which can reduce the environmental footprint of subsidized housing, improve the financial viability of existing subsidized properties, and free resources that can be repurposed for other HUD goals.
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The Challenge of Rising Rents: Exploring Whether a New Tax Benefit Could Help Keep Unsubsidized Rental Units Affordable
The bulk of New York City’s housing stock that is affordable to low-income households is in multifamily buildings that receive no government subsidy to maintain low rents. Therefore, rising rents threaten the future affordability of this critical source of low-rent housing. The report considers whether the city could offer a benefit to protect affordability in this stock, and examines the feasibility of such a program for building owners and the city. The policy brief is third in the five-part series, Housing for an Inclusive New York: Affordable Housing Strategies for a High-Cost City. See the press release or read the key findings.
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Renting in America’s Largest Cities: NYU Furman Center/Capital One National Affordable Rental Housing Landscape
The NYU Furman Center/Capital One National Affordable Housing Landscape examines rental housing affordability trends in the central cities of the nation’s largest metropolitan areas (New York, Los Angeles, Chicago, Houston, Philadelphia, Dallas, San Francisco, Washington, D.C., Boston, Atlanta and Miami) from 2006 to 2013 and illustrates how these trends affected renters as more households chose to rent amid rising rental costs. See the press release, or view the key findings of the report as an infographic.
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Building New or Preserving the Old? The Affordable Housing Tradeoffs of Developing on NYCHA Land
This report explores the tradeoffs between leasing underdeveloped NYCHA land to generate revenue, creating new affordable units, or achieving some portion of both. It finds that in neighborhoods with high rents, leasing underdeveloped NYCHA-owned land for private development could generate either substantial annual lease payments for NYCHA or significant numbers of affordable units. The potential to generate a substantial lease payment or number of affordable units drops as market rents drop. Where there is potential to lease land for development, the report quantifies the tradeoffs between generating revenue for NYCHA and creating new affordable units.
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Effect of QAP Incentives on the Location of LIHTC Properties
Recent research has examined the siting patterns of Low Income Housing Tax Credit (LIHTC) developments, but the reality is that the LIHTC program is not one uniform, national program. Rather, the program is administered by state allocating agencies, each of which has considerable discretion over how to allocate tax credits. In particular, each state issues a Qualified Allocation Plan (QAP), which outlines the selection criteria the state will use when awarding its nine percent tax credits. Some criteria are required by the federal government, such as setting aside at least 10 percent of credits for nonprofit developers and using the minimum amount of tax credit financing feasible. However, states are also allowed to adopt additional criteria that further the state’s housing policy and other goals, such as providing set-asides for developments with existing housing subsidies, including the HOPE VI Program, or awarding bonus points for locating developments in particular types of neighborhoods. As the competition for credits has increased, it seems likely that these criteria play a greater role in shaping where tax credit developments are built.
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Quarterly Housing Update: 1st Quarter 2015
Housing prices increased over seven percent citywide compared to the same quarter of the previous year, according to the Furman Center’s New York City 2015 Quarterly Housing Update: 1st Quarter, with prices in Brooklyn surpassing the peak level set before the Great Recession. The number of residential home sales increased by five percent citywide compared to the same quarter in 2014. Developers received approval to build nearly 6,000 new housing units in New York City, with projects in Brooklyn accounting for nearly all the growth in new development activity. The number of properties receiving notices of foreclosure was nearly 11 percent lower than it was during the same quarter in 2014. Read the full report.
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Low-Income Housing Policy
The United States government devotes about $40 billion each year to means-tested housing programs, plus another $6 billion or so in tax expenditures on the Low Income Housing Tax Credit (LIHTC). What exactly do we spend this money on, why, and what does it accomplish? The authors focus on these questions. They begin by reviewing the history of low-income housing programs in the U.S., and then summarize the characteristics of participants in means-tested housing programs and how programs have changed over time. The authors consider important conceptual issues surrounding the design of and rationale for means-tested housing programs in the U.S. and review existing empirical evidence, which is limited in important ways. Finally, we conclude with thoughts about the most pressing questions that might be addressed in future research in this area.
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Housing, Neighborhoods, and Children’s Health
In theory, improving low-income families’ housing and neighborhoods could also improve their children’s health, through any number of mechanisms. For example, less exposure to environmental toxins could prevent diseases such as asthma; a safer, less violent neighborhood could improve health by reducing the chances of injury and death, and by easing the burden of stress; and a more walkable neighborhood with better playgrounds could encourage children to exercise, making them less likely to become obese. Yet although neighborhood improvement policies generally achieve their immediate goals— investments in playgrounds create playgrounds, for example—Ingrid Gould Ellen and Sherry Glied find that many of these policies don’t show a strong effect on poor children’s health. One problem is that neighborhood improvements may price low-income families out of the very neighborhoods that have been improved, as new amenities draw more affluent families, causing rents and home prices to rise. Policy makers, say Ellen and Glied, should carefully consider how neighborhood improvements may affect affordability, a calculus that is likely to favor policies with clear and substantial benefits for low-income children, such as those that reduce neighborhood violence. Housing subsidies can help families either cope with rising costs or move to more affluent neighborhoods. Unfortunately, demonstration programs that help families move to better neighborhoods have had only limited effects on children’s health, possibly because such transitions can be stressful. And because subsidies go to relatively few low-income families, the presence of subsidies may itself drive up housing costs, placing an extra burden on the majority of families that don’t receive them. Ellen and Glied suggest that policy makers consider whether granting smaller subsidies to more families would be a more effective way to use these funds.
