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Housing Affordability and Child Well-Being

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  • Sandra J. Newman
  • C. Scott Holupka

Abstract

We test three hypotheses about the role of housing affordability in child cognitive achievement, behavior, and health. Using longitudinal data from the Panel Study of Income Dynamics, we apply both propensity-score matching and instrumental-variable modeling as identification strategies and test the sensitivity of results to omitted variable bias. The analysis reveals an inverted-U-shaped relation between the fraction of income devoted to housing and cognitive achievement. The inflection point at approximately 30% supports the long-standing rule-of-thumb definition of affordable housing. There is no evidence of affordability effects on behavior or health.

Suggested Citation

  • Sandra J. Newman & C. Scott Holupka, 2015. "Housing Affordability and Child Well-Being," Housing Policy Debate, Taylor & Francis Journals, vol. 25(1), pages 116-151, January.
    • Handle: RePEc:taf:houspd:v:25:y:2015:i:1:p:116-151
    DOI: 10.1080/10511482.2014.899261
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    References listed on IDEAS

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    1. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
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    Cited by:

    1. Nie, Peng & Li, Qiaoge & Ding, Lanlin & Sousa-Poza, Alfonso, 2023. "Housing Unaffordability and Adolescent Academic Achievement in Urban China," IZA Discussion Papers 16386, Institute of Labor Economics (IZA).
    2. Zheng Zhou & Ying Ma & Wenbin Du & Kaiji Zhou & Shaojie Qi, 2022. "Housing Conditions and Adolescents’ Socioemotional Well-being: An Empirical Examination from China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(5), pages 2721-2741, October.
    3. Hoke, Morgan K. & Boen, Courtney E., 2021. "The health impacts of eviction: Evidence from the national longitudinal study of adolescent to adult health," Social Science & Medicine, Elsevier, vol. 273(C).
    4. Gabriel, Stuart & Painter, Gary, 2020. "Why affordability matters," Regional Science and Urban Economics, Elsevier, vol. 80(C).
    5. Keene, Danya E. & Guo, Monica & Murillo, Sascha, 2018. "“That wasn't really a place to worry about diabetes”: Housing access and diabetes self-management among low-income adults," Social Science & Medicine, Elsevier, vol. 197(C), pages 71-77.
    6. O'Donnell, James & Kingsley, Meg, 2020. "The relationship between housing and children’s socio-emotional and behavioral development in Australia," Children and Youth Services Review, Elsevier, vol. 117(C).
    7. Cho, Esther Yin-Nei & Yu, Fuk-Yuen, 2020. "A review of measurement tools for child wellbeing," Children and Youth Services Review, Elsevier, vol. 119(C).
    8. Aaron Yelowitz, 2017. "Local housing costs and basic household needs," Empirical Economics, Springer, vol. 52(3), pages 901-923, May.

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