SMU SOE Seminar (Apr 28, 2017): Waiting for Affordable Housing

We develop a new dynamic equilibrium model of housing markets for low- and moderate-income households, which is consistent with the key supply restrictions and search frictions that arise in rental markets for public and affordable housing. We estimate the model using data collected by the New York Housing Vacancy Survey in 2011. We find that having access to public (rent stabilized) housing increases household welfare by up to $60,000 ($50,000). The estimated average time on the waitlist for public housing in Manhattan is 19 years. The search frictions in the rent stabilized market imply an average search time of four years.

Keywords: Affordable Housing, Public Housing Communities, Excess Demand, Rationing, Search Frictions, Queuing, Welfare Analysis, Stationary Equilibrium.

JEL classification: C33, C83, D45, D58, H72, R31

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