Subsidized affordable housing development reduces costs for lower-income households directly. It also reduces costs indirectly, by increasing the overall supply of housing — or does it? Michael Eriksen joins to discuss the issue of “crowd out” in affordable housing production.

Show notes:

• Eriksen, M. D., & Rosenthal, S. S. (2010). Crowd out effects of place-based subsidized rental housing: New evidence from the LIHTC program. Journal of Public Economics, 94(11-12), 953-966.
• Cummings, J. L., & DiPasquale, D. (1999). The Low‐Income Housing Tax Credit: An analysis of the first ten years. Housing Policy Debate, 10(2), 251-307.
• Click here for Pathways Home, our eight-part series on homelessness.
• Baum-Snow, N., & Marion, J. (2009). The effects of low income housing tax credit developments on neighborhoods. Journal of Public Economics, 93(5-6), 654-666.
• Diamond, R., & McQuade, T. (2019). Who wants affordable housing in their backyard? An equilibrium analysis of low-income property development. Journal of Political Economy, 127(3), 1063-1117.