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

This 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...

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Bibliographic Details
Published in:Journal of regional science 2019-09, Vol.59 (4), p.669-700
Main Authors: Early, Dirk W., Carrillo, Paul E., Olsen, Edgar O.
Format: Article
Language:English
Subjects:
Households
Housing
housing discrimination
Housing market
Markets
Mortgages
Neighborhoods
Racial differences
Racial discrimination
racial price differences
racial rent differences
Rents
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Summary:This 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.
ISSN:0022-4146
1467-9787
DOI:10.1111/jors.12422