The Housing Assistance Supply Experiment showed that housing allowances do not cause serious price increases, contrary to many pre-experiment predictions. Empirical observation and theoretical analyses both indicate that even during the initial, maximum-impact years the program increased the price of rental housing services by at most a few percent. The reasons for the small price effect are that the demand shift caused by the program is smaller than many anticipated, and that the supply response of the housing market is greater than many anticipated.
This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.
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.
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.