New Housing Development and the Impacts on Rental Prices and Housing Cost Burden in the DC Housing Market
Concerns around housing affordability and new housing development are crucial issues for many large cities in the United States. Policymakers, researchers, and community activists can have varying views on the best policy tools for addressing these housing issues and the role that market-rate housing can play in addressing affordability at a range of income levels. These questions are central to many housing policy debates in Washington, DC, where this research is focused. Using data from the Census American Community Survey, I investigate the relationship between changes in the number of rental housing units from 2010-2019 and rental prices both at the median and for low-income renters. In estimating linear regression models to explore these associations, I find no statistically significant relationship between changes in rental units and median rent, average rent for low-income renters, or percent of low-income renters that are cost burdened in Washington, DC. While the full models do not provide evidence of a relationship, I find support for the claim that effects of new rental units on rental prices are likely mediated by factors including income, racial demographics, rent controlled housing units, and subsidized affordable housing units. These results highlight the importance of a comprehensive approach to housing policy that utilizes a range of policy tools. Future research should continue to investigate these relationships within different housing submarkets in various cities and would benefit from more granular, timely data on rent prices.
Showing items related by title, author, creator and subject.
Shankaran, Janani (Georgetown University, 2017)Established in 1986, the federal low-income housing tax credit (LIHTC) is the nation’s largest source of affordable housing, yet relatively little is known about the program’s impact on community development and neighborhood ...