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Racial Disparity in Exposure to Housing Cost Burden in the United States: 1980-2017

Hess, Chris; Colburn, Gregg; Crowder, Kyle; Allen, Ryan. (2020). Racial Disparity in Exposure to Housing Cost Burden in the United States: 1980-2017. Housing Studies.

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Abstract

This article uses the Panel Study of Income Dynamics to analyse Black-White differences in housing cost burden exposure among renter households in the USA from 1980 to 2017, expanding understanding of this phenomenon in two respects. Specifically, we document how much this racial disparity changed among renters over almost four decades and identify how much factors associated with income or housing costs explain Black-White inequality in exposure to housing cost burden. For White households, the net contribution of household, neighbourhood and metropolitan covariates accounts for much of the change in the probability of housing cost burden over time. For Black households, however, the probability of experiencing housing cost burden continued to rise throughout the period of this study, even after controlling for household, neighbourhood and metropolitan covariates. This suggests that unobserved variables like racial discrimination, social networks or employment quality might explain the increasing disparity in cost burden among for Black and White households in the USA.

Keywords

Cost Burden; Housing Cost; Racial Inequality; Income Inequality; Rent Burden; Affordability; Neighborhoods; Segregation; Dynamics; Hardship; Prices; Market; Poor

How Do Single-Family Homeowners Value Residential and Commercial Density? It Depends

Acolin, Arthur; Colburn, Gregg; Walter, Rebecca J. (2022). How Do Single-Family Homeowners Value Residential and Commercial Density? It Depends. Land Use Policy, 113.

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Abstract

This paper develops estimates of the relationship between local density and single-family home values using 2017 transactions for five U.S. metropolitan regions: Chicago, Los Angeles, Minneapolis, Philadelphia, Seattle. Proposals to build new commercial and residential development projects that would increase local density commonly face opposition from local homeowners. Academic literature links the response from homeowners to concerns that higher density is associated with lower property values but there is limited empirical evidence establishing this relationship at the local level. We find a positive and significant relationship between density and house value in the core area of the five metropolitan regions we analyze. Within 7.5 miles of the center of these metropolitan regions, a 10% increase in surrounding built area density is associated with a 1.1–1.9% increase in house prices per square foot. For outlying areas, the estimates are smaller and even negative in several cases. We instrument density based on topographic and soil characteristics and find similar results. These findings point to the need for a more nuanced discussion of the relationship between local density and housing values.

Keywords

Population Density; Soil Density; Single Family Housing; Home Ownership; Housing Development; Housing Discrimination; Home Prices; Los Angeles (calif.); Density; Single-family House Value; Urban Form; Residential Development; Real Estate; Property Values; Residential Density; Development Programs; Housing; Estimates; Metropolitan Areas; Development Projects; Empirical Analysis; Families & Family Life; Soil Characteristics

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