TY  - JOUR
AU  - Sieg, Holger
AU  - Yoon, Chamna
TI  - Waiting for Affordable Housing in New York City
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 26015
PY  - 2019
Y2  - June 2019
DO  - 10.3386/w26015
UR  - http://www.nber.org/papers/w26015
L1  - http://www.nber.org/papers/w26015.pdf
N1  - Author contact info:
Holger Sieg
Department of Economics
University of Pennsylvania
3718 Locust Walk
Philadelphia, PA 19104
Tel: 215 898 7194
Fax: 215-573-2057
E-Mail: holgers@econ.upenn.edu

Chamna Yoon
Korea Advanced Institute of Science and Technology
Republic of Korea
E-Mail: chamna.yoon@gmail.com
AB  - We develop a new dynamic equilibrium model with heterogeneous households that captures the most important frictions that arise in housing rental markets and explains the political popularity of affordable housing policies. We estimate the model using data collected by the New York Housing Vacancy Survey in 2011. We find that there are significant adjustment costs in all markets as well as serious search frictions in the market for affordable housing. Moreover, there are large queuing frictions in the market for public housing. Having access to rent-stabilized housing increases household welfare by up to $65,000. Increasing the supply of affordable housing by ten percent significantly improves the welfare of all renters in the city. Progressive taxation of higher-income households that live in public housing can also be welfare improving.
ER  -