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Vouchers versus Production Revisited

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  • Mark Shroder
  • Arthur Reiger

Abstract

Policy makers who want to help house low-income families might either fund production of new units or supplement the payments families make for existing units. Conventional wisdom holds that production costs more, but it has been claimed that the long-term discounted costs of project-based and tenant-based housing assistance may not be very different.Using large databases for assisted tenants from the U.S. Department of Housing and Urban Development, we find that 15 to 20 years after construction, Section 8 New Construction/Substantial Rehabilitation projects remained considerably more expensive than Section 8 certificates. The federal government could not use construction subsidies to preempt rent inflation. Even in the most inflated markets, rents for units that developers wanted to build are higher than comparable certificate rents.

Suggested Citation

  • Mark Shroder & Arthur Reiger, 2000. "Vouchers versus Production Revisited," Journal of Housing Research, Taylor & Francis Journals, vol. 11(1), pages 91-107, January.
    • Handle: RePEc:taf:rjrhxx:v:11:y:2000:i:1:p:91-107
    DOI: 10.1080/10835547.2000.12091951
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    Cited by:

    1. Jacob Vigdor & Jens Ludwig, 2007. "Segregation and the Black-White Test Score Gap," NBER Working Papers 12988, National Bureau of Economic Research, Inc.
    2. Ellen, Ingrid Gould, 2020. "What do we know about housing choice vouchers?," Regional Science and Urban Economics, Elsevier, vol. 80(C).

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