The Effect of LIHTC Development on Neighborhood Political Composition

• In Event: New Perspectives on People and Places in the Low-Income Housing Tax Credit Program

Abstract

This paper analyzes individual decisions to stay or move from a residence after nearby construction under the low-income housing tax credit (LIHTC) program. The research design is a spatial difference-in-differences model comparing the choice of registered voters on a block where LIHTC development occurs to those on different blocks in the same block group. To estimate the model, we merge three distinct datasets: individual voter records, a panel of residential address history, and data describing LIHTC construction timing. We document a 30% increase in block level in-migration, with preliminary results showing a statistically significant increase in the relative share of Democratic voters. Individual and neighborhood heterogeneity in move responses are explored to understand revealed preferences for affordable housing.

Authors

• Mike Mei, Colgate University
  Presenting Author

• Kenneth Whaley, University of South Florida
  Non-Presenting Co-Author