How housing allowances affect housing markets : supply experiment interim findings

by Wayne D. Perry

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The Housing Assistance Supply Experiment was designed to learn what effects a full-scale housing allowance program would have on local housing markets in two experimental sites: Brown County, Wisconsin, and St. Joseph County, Indiana. The program tested effects in three major areas: housing prices, neighborhood change, and transactions between participants and market intermediaries. Halfway through the five-year experimental period, the impact of the program was found to be minor in each department. Although both rents and home prices did rise rapidly in each site, virtually all the increases were accounted for by general inflation. While no major contradictions to the interim findings are expected, the conclusions presented here will be further tested, refined, and expanded by additional analysis.

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.

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