Racial rent differences in U.S. housing markets: Evidence from the housing voucher program

Abstract

AbstractThis paper exploits an unusually rich data set to estimate racial differences in the rents paid for identical housing in the same neighborhood in U.S. housing markets and to show how they vary with neighborhood racial composition. Results suggest that black households pay more for identical housing in identical neighborhoods than their white counterparts and that this rent gap increases with the fraction of the neighborhood white. In neighborhoods with the smallest fraction white, the premium is about 0.6%. In neighborhoods with the largest fraction white, it is about 2.4%. This pattern holds across different types of areas.