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The Spatial Concentration of Subsidized Housing - Poverty & Race ...

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Overall, it is clear that there are differential effects on the housing marketdepending on the location <strong>of</strong> the subsidized housing construction. Results have beenmixed, finding both positive and negative effects, and the effects are usually small.Unfortunately many <strong>of</strong> these studies use flawed methodologies which make the resultsunreliable. <strong>The</strong> focus is typically on only one housing market and each study looks atdifferent housing programs which make the results difficult to compare and generalize.<strong>The</strong> negative effect <strong>of</strong> public housing on property values may be limited to theolder and larger project-based public housing. A recent study by Bair and Fitzgerald(2005) indicates that the negative impacts <strong>of</strong> public housing may be overcome throughHOPE VI revitalization. An evaluation <strong>of</strong> six HOPE VI projects in Atlanta, Charlotte,Kansas City, Boston, Denver and Philadelphia found a statistically significant andlarge positive increase in property values <strong>of</strong> 8-10 percent per quarter mile from thesite.<strong>Subsidized</strong> <strong>Housing</strong> Impact on Racial SegregationEarly studies tended to focus on the impact <strong>of</strong> public housing on racialsegregation and whether subsidized housing was causing “white flight”. Gray andTursky (1986) found that families receiving rental assistance were highly concentratedin a small number <strong>of</strong> minority-concentrated neighborhoods. Between 50 and 85percent <strong>of</strong> family units were located in only 5 percent <strong>of</strong> the census tracts in each MSA(p. 249). Bickford and Massey (1991) found that projects for the elderly were11

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