Market intermediaries and indirect suppliers : reconnaissance and research design for site II

by William G. Grigsby, Michael G. Shanley, Sammis B. White

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A reconnaissance of housing-related industries (residential mortgage lending, real estate brokerage, home repair and remodeling, property insurance, home improvement financing) in St. Joseph County, Indiana, Site II of the Housing Assistance Supply Experiment, suggests : (1) Home purchases by participants in the experimental housing allowance program are feasible, depending on the posture of mortgage lenders and insurers. (2) Efforts to bring housing up to program standards should create a market for home repair and improvement contractors without straining the industry's capacity. (3) It is difficult to judge the probable effect of realtors' policies on black and racially mixed neighborhoods. (4) Management and maintenance firms, rental agents, and insurance companies are not pertinent to the experiment. Future research will include informal local inquiries and collection of Housing Allowance Office data, and formal surveys of landlords and homeowners. Special attention will focus on the deteriorated and marginal area of South Bend's housing market.

This report is part of the RAND Corporation note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.