For years, scholars, advocates and journalists have highlighted the ongoing racism and segregation in the housing market, yet a segment of the housing market — government-subsidized housing — has been overlooked, until now.

A new study from researchers at Washington University in St. Louis and other institutions is the first in decades to investigate racial inequality in the subsidized housing market. Using restricted 2017 American Housing Survey data provided by the U.S. Department of Housing and Urban Development (HUD), researchers found quantitative evidence of widespread racial inequities in unit safety, total cost, affordability — defined as percent of income spent on rent — and segregation.

For example, they found that Latino subsidized renters pay $110 more per month than white subsidized renters — a 25% upcharge — despite living in lower-quality units. Black and Asian subsidized renters, on average, pay $75 more per month than their white counterparts — a 17% upcharge. For Latino and Asian renters, in particular, some of the total price difference is due to living in more expensive cities, but all three of these groups spend 5% more of their household income on their subsidized units than their white counterparts.

Black subsidized renters are still disproportionately concentrated in publicly managed complexes and the tenant voucher program, which is the most expensive of the housing subsidy programs for both the government and the residents, according to the authors.
Latino tenants are more likely to live in other government-subsidized housing, such as migrant settlement housing or locally funded housing projects.
According to the authors, another reason why white subsidized renters continue to receive higher-quality units is because they tend to be older. By comparison, Indigenous, Asian, Black and Latino subsidized renters are disproportionately families with children. Most subsidized housing programs separate older adults from families, and the housing available to older adults is often well-maintained. This practice exacerbates inequities and racial segregation in subsidized housing, they said.

Could personal preferences be another cause?

“If personal preferences were a significant factor, racial inequality across low-income renters would be comparable for subsidized and unsubsidized tenants,” Whitehead said. “While the general racial inequality patterns are similar, racial inequality is notably larger for subsidized renters, which indicates that personal preferences are not a significant factor.”

Going forward
In the 1960s, calls to reform the federally subsidized public housing program led to a series of actions that demonized, privatized and slashed program funding. Howell said they hope this will serve as a lesson for today’s leaders.

Despite its flaws, HUD-funded project-based subsidies — those most criticized within public discourse — provide the highest quality, most affordable units for low-income tenants at the cheapest price point for the government, the authors wrote. And compared with unsubsidized low-income renters, subsidized renters live in safer conditions and spend less of their income on housing.

Further defunding governmental housing programs or increasing the number of tenant vouchers will not only fail to address the racial inequities outlined in this study, it would also be a travesty for millions of vulnerable Americans, the researchers said.

“It is time for our government to once and for all close loopholes and adopt new practices that will ensure equitable and fair housing practices for all low-income subsidized renters. We can and must do better,” Korver-Glenn said.

IMAGE CREDIT: Washington University in St. Louis.

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