Supply Response to the Housing Allowance Program
ResearchPublished 1980
ResearchPublished 1980
Demand shifts caused by the Housing Assistance Supply Experiment are large enough to drive up the price of standard housing services in the absence of supply response. This Note simulates rental housing market behavior in Brown County, Wisconsin, and St. Joseph County, Indiana, in a series of accounting tables to show how supply responses prevent serious price increases in the two counties. Results show three supply responses: repair of substandard housing, supply adjustment, and occupancy rate adjustment. The first response reduces potential price increase by two-thirds, the first and second together reduce it by four-fifths, and all three together reduce it by 97 percent.
This publication is part of the RAND note series. The note was a product of RAND from 1979 to 1993 that reported miscellaneous outputs of sponsored research for general distribution.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
RAND 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.