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The Effects on Consumption Patterns of Replacing Housing Programs with Cash Grants

Bibliographic Data

ID21633779
AuthorsDirk W Early (0000-0001-6646-9440, Southwestern University, corresponding author), Edgar O Olsen (University of Virginia)
Year2025
Volume35
Issue5
Pages829-846
Publication date2025-09-03
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueHousing Policy Debate (JOURNAL)
Journal identifiersISSN: 1051-1482 • E-ISSN: 2152-050X
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/10511482.2024.2442415
OpenAlexW4405985423
LanguageEN
Citations received1
References cited9

This paper estimates how replacing low-income housing programs with equally costly cash grants would change the consumption patterns of recipients. Based on American Housing Survey data and evidence on the cost-effectiveness of different types of assistance, the results suggest that housing voucher recipients consumed 15% more housing services and 12% fewer other goods than they would have consumed had they received equally costly cash grants. Occupants of subsidized projects lived in housing about as good as they would have chosen with cash grants but consumed substantially fewer other goods. Owing to their cost inefficiencies, programs of project-based housing assistance have led to less consumption of both goods than would result from cash grants for substantial fractions of their participants. Approximately two thirds of public housing tenants and more than a third of recipients of other forms of project-based housing assistance occupy worse housing and consume fewer other goods than they would with equally costly cash grants. These findings make a strong case for the use of cash assistance rather than project-based housing assistance to help low-income households and question whether voucher’s modest improvement in housing conditions compared with cash grants justifies its extra administrative costs and the burden it places on households to find a landlord willing to accept a voucher

Business · Cash · Economics · Public economics · Sociology · Housing Market and Economics · Housing, Finance, and Neoliberalism · Urban, Neighborhood, and Segregation Studies · Finance

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Unique citing works1
Citations per year1
Citation span2026 - 2026 (1)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 1

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