Does public housing reduce housing cost burden among low-income families with children?

ABSTRACT

About half of all renter households and over three-quarters of very low-income households in the United States experience a housing cost burden, with higher rates among families with children. Public housing may be an important tool for reducing families’ housing cost burdens. The current study uses nearly four decades of data from the Panel Study of Income Dynamics and its Assisted Housing Database to explore the relationship between public housing and housing cost burden among children in low-income families. Results from fixed effects models suggest that public housing is associated with a greatly reduced risk of experiencing housing cost burden when housing assistance receipt is measured a year before housing cost burden. These findings highlight the importance of public housing for reducing low-income families’ housing cost burdens.     

Profiles of Housing Cost Burden in the United States

In this study, the ordered logistic regression model indicates that renters suffer a greater housing cost burden than homeowners and that the lower the income of the household, the larger the portion of income that is spent for housing. Further, the model also shows that the burden of high housing costs falls disproportionately on certain groups of American households. Compared to the reference group, two single-risk groups (Asian-American households and households with three or more children) and two dual-risk groups (female-headed households with three or more children and minority households with three or more children) tend to have a higher risk of excessive housing costs. Elderly households and three elderly-related groups (female-headed elderly households, minority elderly households, and female-headed minority elderly households), however, tend to have a lower risk of housing cost burden than other households. The housing cost burden of the reference group is comparable to the housing cost burden of each of the following groups: for single female-headed households; Black households; Hispanic households; and female-headed minority households. The policy implications of these findings are discussed in the paper.     

Determinants of housing quality: A comparison of white,African-American,and Hispanic single-parent women

This study examines housing quality among three groups of single-parent women: white, African-American, and Hispanic. Three indicators of housing quality—crowding, affordability, and satisfaction—are used to discover the extent to which these groups experience housing problems. This study also explores differences and similarities in the factors that precipitate problems in housing quality for these three groups of single parents. Findings suggest important differences and similarities in the nature of housing quality problems among white, African-American, and Hispanic single-parent women. The specified variables explained about 20% of the variance in crowding, housing affordability, and housing satisfaction. On measures of objective and subjective housing quality, white single mothers are better housed than their African-American or Hispanic counterparts. Hispanic single mothers have the largest housing cost burden and average more persons per household than the other groups. African-Americans are twice as likely as either group to live in low-quality housing and reported the lowest average satisfaction with their housing. Her research interests include housing and neighborhood assessment and women and public policy issues. She has recently published articles inUrban Affairs Quarterly andHousing and Society on housing and neighborhood assessment criteria among black urban households and the housing cost burden of various groups of female-headed households. She received her Ph.D. from Ohio State University. Her research interests include the housing adjustment behavior of women and public policy. She has recently completed her thesis on the role of noncustodial parents in determining the quality of life of their children. She is also the recipient of the Tessie Agan Award for research excellence from the American Association of Housing Educators for a paper titled “Unterstanding Constraints and Residential Satisfaction among Low-Income Single-Parent Families.”     

Augmented informality: South Africa's backyard dwellings as a by-product of formal housing policies

Insufficient and inadequate housing for the urban poor has a long history in South Africa, as in other African cities. Nearly one-fifth of urban households in South Africa reside in an informal dwelling. While most live in informal settlements, significant proportions have erected informal structures (essentially ‘shacks’) in the backyard of another property, a distinctly South African phenomenon. Backyard dwellings have historically been overlooked by housing policies that focus on upgrading and/or eradicating informal settlements. Previously, backyard dwellers were perceived as marginalised, living in appalling conditions and exploited by cavalier landlords. However, the post-apartheid provision of state-funded housing for the poor has altered the nature of backyard housing, creating a new class of cash-poor homeowners who are dependent on income from backyard dwellers' rent, thus ensuring a more equitable power pendulum between landlord and tenant. This paper uses research conducted in a low-income state-subsidised housing settlement in Cape Town to explore the new dimensions of informal backyard housing, both for landlords and tenants, as a consequence of South Africa's formal housing policies.     

Rent Subsidies and the Elderly

This paper brings together the relatively meager and widely dispersed findings that apply to how the elderly would fair if a rent voucher program were to become the single government housing subsidy to households of low and moderate income. The paper begins by reviewing the findings that apply to the elderly from the recent Experimental Housing Allowance Program (EHAP), and then relates these EHAP fingings to findings on housing needs of various types of elderly such as low income elderly, racial minority elderly and elderly with functional impairments. In theory, the great benefit of the rent vouchers to the elderly is the unique freedom in housing choice and location inherent in the program. However, the EHAP findings suggest that the more unique one's housing needs the less likely one will successfully negotiate the voucher process. This process requires the voucher recipient to find program eligible (minimum standard) housing. The very poor elderly, those susceptible to minority discrimination in the private market, and those in need of barrier free, security protected and support serviced housing, will have the hardest time searching for and findings housing toward which they can apply a rent voucher. At best the housing voucher concept would make sense as one among several housing subsidy options open to elderly recipients. If it became the only option many of the poorest, most disenfranchised elderly would find themselves without a housing subsidy.     

Excluding exceptions: Housing non-affordability and the oppression of environmental sustainability?

This paper explores the provision of homes for less wealthy households in rural England. By allowing ‘exceptions’ to UK planning law to provide low-income housing for local residents, the national government seeks to secure dwellings for the less wealthy and so sustain socially mixed rural villages. This paper explores how the production of homes through the exception policy is not conducive to the construction of many new houses. The particular emphasis in the paper is on how responsible agents are discouraged from being more active in erecting new village homes for low-income households. Empirically, the paper draws on documents, interviews and a social survey in the counties of Bedfordshire, Cambridgeshire and Norfolk to investigate the process of delivering rural exception homes. It is concluded that, despite Government assertions that a socially mixed countryside is desirable, the decision-making criteria that dominate the worldviews of agents in social housing provision work against this outcome.     

Subsidized Housing and Household Hardship Among Low‐Income Single‐Mother Households

We investigate associations of housing assistance with housing and food‐related hardship among low‐income single‐mother households using data from the National Survey of America’s Families (N = 5,396). Results from instrumental variables models suggest that receipt of unit‐based assistance, such as traditional public housing, is associated with a large decrease in rent burden and modest decreases in difficulty paying rent or utilities and residential crowding. Receipt of tenant‐based assistance, such as housing vouchers or certificates, is associated with a modest increase in housing stability but also with modest increases in rent burden and difficulty paying rent or utilities. We find no associations between either type of housing assistance and food related hardship.     

Financing low-income housing in South Africa: Borrower experiences and perceptions of banks

South Africa is facing a low-income housing crisis, with the current backlog estimated at over three million units. An obstacle in the provision of low-income housing is the difficulty encountered by commercial banks to extend loans in this market despite supporting initiatives by Government. A lack of knowledge on the borrowing behaviour, preferences and experiences of low-income households in accessing housing finance from the commercial banking sector in South Africa hampers an understanding of the reasons for these problems. This paper's contribution is to provide information on the experiences and perceptions of low-income borrowers in the housing market of South Africa, specifically in their dealings with commercial banks. Results from a survey of 653 households across five provinces of the country are provided. In the survey, a structured questionnaire was used to obtain information on the experiences and perceptions of low-income households about their access to credit and housing finance, their experience of banks, the successes in credit approval, their judgements on the suitability of banks’ home-loan products, as well as preferences with regard to prices and interest rates.     

Child care burden and the risk of child maltreatment among low-income working families

Studies suggest that a substantial proportion of low-income working mothers experience work disruptions and parental stress related to child care, which may lead to increases in the risk of physical and psychological abuse and neglect of children. However, little research has examined the relationship between child care burden and the risk of child maltreatment among low-income working families. Using the Fragile Families and Child Wellbeing Study 3-year data, this study explores how child care burden is associated with the risk of child maltreatment (physical aggression, psychological aggression, and neglectful behavior) among low-income working mothers. We find that instability in child care arrangements is likely to increase mothers' physical and psychological aggression, while not having someone reliable for emergency child care is likely to increase mothers' neglectful behaviors. Findings also show that the risk of child maltreatment related to child care burden measures is more significant for single mothers than married mothers. Potential policy implications are discussed.     

The development of a low-income housing finance sector in South Africa: Have we finally found a way forward?

Since the 1994 democratic elections, the South African government has been intent on encouraging the country's financial sector to extend finance to low-income households as a means of delivering an acceptable standard of housing through its housing subsidy scheme. This paper examines the history of lending to low-income black households beginning in the late 1980s and describes the problems encountered by the banks from the early 1990s onward. It also demonstrates how intertwined the development of housing finance has been with the formulation of the country's housing policy. As a means of understanding the development of the sector, the following issues are considered: the effort to mobilize mortgage finance via the banks; the shift in focus toward the use of micro-finance for housing purposes via non-bank lenders; the competition that has arisen between the banks and non-bank lenders; the recent attempt by government to compel the banks to lend through community reinvestment-type legislation and the banks’ response through the establishment of a Financial Sector Charter negotiation process aimed at transforming the entire financial sector. The paper concludes by offering some judgments as to whether this recent attempt by government and the banks to break through the decade-old housing finance logjam will be successful.     

Shelter Poverty and the Elderly

The conventional percent-of-income standard of housing affordability is challenged as arbitrary and logically inconsistent. An alternative, sliding scale of affordability is conceptualized; households paying more than they can afford on this standard are called "shelter poor." The shelter-pover scale is operationalized for elderly households of one person an two or more persons and applied to data from the 1985 American Housing Survey. It is found that 31% of all elderly households were shelter poor in 1985, compared with 45% paying 25% or more of their incomes for housing. The shelter-poverty approach suggests that the housing affordability problem is less severe among middle-income elders than the conventional standard implies, but more severe among low-income elderly. Some of the policy implications of the findings are briefly sketched, in terms of income supports as well as housing provision.     

Housing affordability among elderly female heads of household in nonmetropolitan areas

This study investigates the extent and nature of housing affordability for elderly nonmetropolitan female heads of household using data from the Panel Study of Income Dynamics. The results indicate that over one-third of elderly nonmetropolitan female heads of household experience housing poverty and that those who rent, who have fair to poor health, and who are minorities are particularly vulnerable. Housing affordability, measured by the concept of housing poverty, identifies households struggling to meet basic needs while the conventional 25% of income for housing expenditures ratio identifies a larger population. The findings suggest the need for multifaceted public policies to address the problem of housing poverty. Her research interests include housing affordability, housing and community vitality, and decision making. She received her Ph.D. from Purdue University. Sooyoun Park is in the same department as a Project Assistant on a USDA-funded research project entitled “Housing Affordability in Rural Areas,” which is a joint project between Nebraska and Wisconsin. Her research interests focus on housing management behavior in relation to housing expenditure burden. She received her Ph.D. from the University of Nebraska-Lincoln.     

Political and organizational barriers to satisfying low-income U. S. seniors' need for affordable rental housing with supportive services

A substantial share of the low-income older tenants who occupy U. S. government-subsidized rental housing has physical and cognitive limitations. These older tenants are often women living alone in their 70s and 80s, who need help obtaining community-based services, demand-responsive transportation, help with apartment housekeeping and maintenance, self-care assistance, and design modifications made to their dwellings. Other low-income and frail older persons who have large housing expense burdens or occupy physically deficient dwellings also need affordable rental housing with these supportive services. The unmet supportive service needs of these groups persist even as this country's major political and professional stakeholders are aware of their problems and have solutions. This paper examines five major political and organizational barriers that have restricted the availability of supportive services in affordable rental developments. It offers 12 policy recommendations.     

Comparing housing affordability and quality among disability households: The United States and its regions

Two national data sets (the Panel Study of Income Dynamics and the Survey of Income and Program Participation) are analyzed to compare housing afford-ability and quality between U.S. disability households and other households and by region. The researchers conclude that disability households in the United States are at risk of inability to afford housing. In addition to higher housing-income ratios, these households are more likely to be older, in poverty, in poor or fair health, and on public assistance than other U.S. households. They are also more likely to carry severe housing cost burdens, to be in housing poverty, and to be receiving housing assistance. Regional differences among disability households and their housing seem to echo geographic economic and population trends, as well as regional variances in the housing stock. The data, which did not address housing accessibility, are less clear about disability households' risks relative to housing quality. Her research interests include housing for special needs populations, community housing needs assessment, and housing policy. She received her Ph.D. from Virginia Polytechnic Institute and State University. His research interests include professional practice and the housing needs of special needs populations, particularly the homeless. He received his Master's degree from California State University at Chico. He is a Housing Extension Specialist with the Cooperative Extension Service. His research interests include environmental issues, housing at-risk populations, and international housing. He received his Ph.D. from Cornell University.     

Gender and housing : The provision of accommodation for young adults in three Mexican cities

The literature on gender and housing is oddly distorted, for it is dominated by research on households which are ‘women-headed’, even where the majority of women may live in households conventionally regarded as being headed by men. This literature shuns the ‘traditional’, male-headed, nuclear household and regards ‘non-traditional’ households as being those headed by single mothers or women living alone. The first part of this paper argues that it is important not to restrict discussion of gender and housing to the problems facing single mothers or women living alone, because there is a danger of rendering the majority of women, once again, invisible.Equating ‘traditional’ and ‘non-traditional’ households with ‘nuclear’ and ‘women-headed’ households, respectively, confuses structure with headship and overlooks cultural variations in what constitutes a ‘traditional’ household — the nuclear household is not necessarily the traditional norm. The second part of this paper explores a little-documented housing arrangement in which large numbers of women are involved in urban Mexico: sharing. ‘Sharing’ occurs when two or more households occupy the same plot of land; one household owns the plot, allowing the other(s) to live there rent-free. Sharing mostly involves the adult sons or daughters of the plot owners, and may be regarded as a variation on the extended household structure. Sons are more likely to be allowed to bring their wives to their parents' home, whereas daughters are more likely to leave. Women living with their in-laws lack security of tenure and there is often conflict between wives and members of their husband's family of origin, particularly their mothers-in-law.The anthropological literature has identified gender relations as the source of conflict between women in extended households. Sharing reduces the potential for conflict by giving the younger household greater autonomy. Furthermore, concern for their daughters' welfare leads many parents to offer accommodation to married daughters as well as sons. Single mothers, however, are more likely to live as part of their parents' household than to share. In this respect, the nuclear household norm is reinforced, since sharing seems to be a privilege accorded only to those who are married.     

Housing Costs in an Oil and Gas Boom Town: Issues for Low-Income Senior Women Living Alone

In resource-based towns that have historically been dominated by young workers and their families, seniors’ housing issues have received little attention by community leaders and senior policymakers. However, since the 1980s there has been a growing trend of older women living alone in Canadian rural and small town places. Although research on rural poverty focuses on small towns in decline, booming resource economies can also produce challenges for low-income senior women living alone due to higher housing costs and the retrenchment of health care and service supports. Because housing costs can consume a significant proportion of household income, low-income senior women living alone may not have the financial resources to cover expenses in a competitive housing market. Using a household survey, we explored this different dimension of the Canadian rural landscape by looking at housing costs for low-income senior women living alone in the booming oil and gas town of Fort St. John, British Columbia, Canada. The authors findings indicate that low-income senior women living alone are incurring higher housing costs compared with other senior groups.     

Crisis of Natural Building Materials and Institutionalised Self-Help Housing: The Case of Grameen Bank in Bangladesh

Traditional rural housing is largely based on the use of locally available natural resources as prime building materials, usually in a process of self-help building undertaken by the community. Such housing is well adapted to a natural environment with widely available resources, and supports people's direct involvement in the construction of their dwellings. However, the advent of a cash economy and current scarcity of natural resources has greatly affected the self-help building process. In rural Bangladesh, affluent households are shifting to manufactured materials and skilled builders, and the quality of housing of low-income households is declining. For the latter, self-help is the only option, and recognition of this fact and of the increasing decline in the quality of their housing has prompted institutional intervention. This paper discusses the Grameen Bank's rural housing programme in Bangladesh which provides loans for manufactured building components for low-income rural households to build houses on a self-help basis. A review of this programme indicates some of its strengths and shortcomings in the context of scarcity of natural building materials and widespread poverty.     

The Economic Organization of Extended Family Households by Race or Ethnicity and Socioeconomic Status

This study examines differences in the amount of economic support or mutual benefit derived from extended family living arrangements by studying differences in monetary contributions to essential household expenditures across family units in extended family households. Using the 2008 Survey of Income and Program Participation, multivariate regression and selection models are estimated to assess racial differences in family contributions toward household expenses in extended family households. Extended family households have very unequal monetary contributions toward household rent and utilities, although Hispanics have less unequal monetary contributions when compared with other racial groups. Hispanic and Asian extended family households experience decreasing inequality in financial contributions as the income of each family increases, whereas no relationship between financial contributions and income is found for Whites or Blacks. This suggests a different cultural orientation to extended family living arrangements for Asians and Hispanics when compared with non‐Hispanic Whites.     

A Longitudinal Examination of Housing Hardships Among Urban Fathers

Stable housing is widely recognized as a prerequisite for the functioning of individuals and families. However, the housing stability of fathers is understudied, particularly for fathers living apart from their children. This analysis measures the extent and nature of fathers' housing insecurity using the Fragile Families and Child Wellbeing Study, a national longitudinal survey of urban families. Housing insecurity affects a substantial portion of fathers, with 25% experiencing insecurity at least once in their child's first 9 years. However, few fathers report persistent insecurity that spans consecutive waves. Data also indicate significant differences in rates of housing insecurity between fathers living with, and apart from, the mothers of their children, with nonresident fathers far less likely to report secure housing and more likely to experience incarceration. The nature of insecurity experienced by nonresident fathers is also qualitatively different than that experienced by their coresident counterparts.