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Are Inclusionary Housing Programs Color-blind? The Case of Montgomery County MPDU Program

Author

Listed:
  • Adji Fatou Diagne

    (Howard University)

  • Haydar Kurban

    (Howard University)

  • Benoît Schmutz

    (Ecole Polytechnique; CREST)

Abstract
Relying on exhaustive administrative data spanned over four decades, this paper studies the treatment of African American applicants by the Moderately Priced Dwelling Unit (MPDU) program in Montgomery County, MD. We show that this program was equally accessible to African-American applicants, except between 1995 and 2000, when African Americans’ conditional probability of purchasing a home through the program was lowered by 10% compared to that of other applicants, maybe as a temporary response to the sudden surge in African American applicants that occurred at that time. Turning to the outcome of the allocation process, we show that even if the spatial allocation of beneficiaries does reflect preference-based sorting patterns observed on the private housing market at the neighborhood level, the program seems to induce some scattering of different ethnic groups at the most local level. When comparing beneficiaries living in the same housing development, but at different addresses, we find that African American beneficiaries have 15% fewer African-American neighbors.

Suggested Citation

  • Adji Fatou Diagne & Haydar Kurban & Benoît Schmutz, 2017. "Are Inclusionary Housing Programs Color-blind? The Case of Montgomery County MPDU Program," Working Papers 2017-47, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2017-47
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    References listed on IDEAS

    as
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    Cited by:

    1. Richardson, Benjamin Felix, 2022. "Finance, food, and future urban zones: The failure of flexible development in Auckland, New Zealand," Land Use Policy, Elsevier, vol. 119(C).
    2. Ingrid Gould Ellen & Stephen L. Ross, 2018. "Race and the City," Working Papers 2018-022, Human Capital and Economic Opportunity Working Group.
    3. Mario A. Fernandez & Shane L. Martin, 2020. "Staged implementation of inclusionary zoning as a mechanism to improve housing affordability in Auckland, New Zealand," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 13(4), pages 617-633, February.

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    More about this item

    Keywords

    Housing Market Discrimination; Housing Policy; Spatial Sorting; Propensity Score Matching;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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