A Study of the Demand for Housing by Low Versus High Income Households

Abstract

”Poor people cause poor housing.” This statement is the basis for one of the major policy proposals to eradicate poor housing and neighborhoods that plague some of our urban areas. If the motto is correct, then poor housing and poor neighborhoods can be eliminated by providing direct support for the demand for housing by low-income households. The role of government, under such a policy, is to funnel its resources to households in the form of demand subsidies. Examples of such demand-side programs are housing allowances and the Section 8 existing housing program.