Cover: Supply Response to the Housing Allowance Program

Supply Response to the Housing Allowance Program

Published 1980

by C. Peter Rydell


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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.

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