Showing posts with label eviction. Show all posts
Showing posts with label eviction. Show all posts

Monday, July 31, 2017

Why is Moving to a New Home Worse for African-American and Hispanic Children than for White Children?

by Kristin Perkins
Postdoctoral Fellow
Compared to children who do not move to a new home, children who move are more likely to do worse in school, have more physical and mental health problems, and are more likely to be delinquent and use alcohol and drugs. In recent research that uses detailed data from the Project on Human Development in Chicago Neighborhoods, I find that African-American and Hispanic children showed more signs of anxiety and depression after they moved. I also find that, on average, Hispanic children demonstrated more aggressive behavior after they moved (Figure 1). White children in this sample, however, did not appear to be negatively affected by a move.
Figure 1.  



Why might moving be worse for African-American and Hispanic children than it is for white children? Perhaps non-white children are more likely to be exposed to violence or have fewer social supports in their homes and neighborhoods, which would make them more susceptible to the disruptive effects of a move? Neither of those factors, however, explained the negative effect of moving for African-American and Hispanic children (as measured by the Child Behavior Checklist, well-established scales that are frequently used as indicators of child behavior). A variety of other factors, such as being renters instead of homeowners and, for Hispanic children, their immigration history, also failed to explain the differences.

Another factor could be the differences between the types of neighborhoods that people are leaving and those they are entering. In general, most of the children in my sample whose families left their neighborhoods moved to a new neighborhood with similar characteristics. This is consistent with other research showing that it is uncommon for families to move to new neighborhoods that are radically different (in terms of poverty level and other characteristics) from the neighborhoods they are leaving. Given this, it's not surprising that among those moving to similar (or worse) neighborhoods, African-American and Hispanic children showed more signs of anxiety and depression, on average, after they moved.

I do, however, have suggestive findings that indicate that African-American children who moved to much better neighborhoods, within or beyond the city of Chicago, did not experience increases in anxiety and depression, unlike African-American children who moved to similar or worse neighborhoods. This finding is consistent with research on the Moving to Opportunity program showing better outcomes in some domains for children who moved from neighborhoods characterized by concentrated poverty to lower poverty neighborhoods.

These and similar findings from other studies of residential mobility and neighborhood effects have several possible implications for policymakers. The data suggest that the children most likely to experience negative effects of moves seem to be similar to children that Matthew Desmond's work on evictions shows are more likely to experience forced moves. If this is the case, the findings underscore the importance of efforts to prevent and reduce evictions and other forced moves.

The findings also suggest that policymakers pursuing programs that aim to improve neighborhood contexts by relocating families need to acknowledge the potential disruptive effects of residential mobility that could undermine the benefits of those moves. If further research confirm the suggestive results showing that the disruptive effects of residential mobility may differ depending on the characteristics of the destination neighborhood, then mobility programs should be designed to focus on efforts to move families to more advantaged neighborhoods.

Beyond mobility programs, policymakers might consider the extent to which other programs and policies unintentionally increase the number of moves that children make and thus increase the possibility of negative outcomes. As one example, it would be useful to determine if the Housing Choice Voucher Program's time limits for finding a unit to rent with a voucher unnecessarily result in temporary moves before a household finds a permanent unit.

Taken as a whole, such measures could potentially reduce negative outcomes among African-American and Hispanic children whose families have to move, particularly those who have to move frequently.

Thursday, May 19, 2016

Housing Inadequacy Remains a Problem for the Lowest-Income Renters

Irene Lew
Research Analyst
In the early 1970s, in response to growing concerns about the housing conditions of poor families, the US Department of Housing and Urban Development (HUD) developed a measure of housing adequacy for its American Housing Survey (AHS) that continues to be used by the agency today. This adequacy measure was originally designed to evaluate the extent to which the national housing stock met the standard of “a decent home and a suitable living environment” established by the Housing Act of 1949. While the condition of the housing stock has improved over the past several decades, the rental stock is still three times more likely than the owner-occupied stock to be considered inadequate. And problems persist among the most affordable rentals.

While fairly complex, the AHS adequacy measure factors in various housing problems related to plumbing, heating, electrical wiring, and maintenance. Using this AHS measure, the majority of the nation’s rental housing stock is in physically adequate condition. As of 2013, just 3 percent of occupied rental units were categorized as severely inadequate and 6 percent were moderately inadequate. In fact, the adequacy of the rental stock has improved over the past decade, with the share of rentals categorized as physically inadequate declining from about 11 percent in 2003 to 9 percent in 2013. 
Figure 1: click to enlarge
Notes: Inadequate units lack complete bathrooms, running water, electricity, or have other deficiencies. 
Source: JCHS tabulations of HUD, American Housing Surveys.

Stricter building codes have certainly helped to encourage higher quality, particularly the construction of units with complete plumbing and heating systems. As a result, severe physical deficiencies have been rare among the rental stock, especially among newer rentals. Just 1 percent of rentals built 2003 and later was classified as severely inadequate, compared to 4 percent of those built prior to 1960.

It is noteworthy, however, that the AHS adequacy measure does not account for certain health-related quality issues such as the presence of mold or structural issues such as holes in the roof or foundation, so housing quality problems may in fact occur at higher rates than the survey reports. And although physical deficiencies have become less common among the nation’s rental housing stock, housing problems disproportionately appear in units occupied by the lowest-income renters. In 2013, 11 percent of units occupied by extremely low-income renters (those with incomes less than or equal to 30 percent of area medians) were physically inadequate, compared to just 7 percent of those with incomes above 80 percent of area medians.
 Click to enlarge
Notes: Extremely low / very low /  low income is defined as up to 30% / 30–50% / 50–80% of area median income. Inadequate units lack complete bathrooms, running water, electricity, or have other deficiencies.
Source: JCHS tabulations of HUD, 2013 American Housing Survey.

The lowest-income households also accounted for the largest share of renters reporting overcrowded conditions and physical housing problems such as toilet breakdowns, exposed electrical wiring, heating equipment breakdowns lasting six hours or more and the presence of rats in the unit. 
Figure 3: Click to enlarge
Notes: Extremely low / very low /  low income is defined as up to 30% / 30–50% / 50–80% of area median income Overcrowded conditions refer to units where there are more than two people per bedroom. Holes in the floor are those that are about four inches across.  
Source: JCHS tabulations of HUD, 2013 American Housing Survey.

Matthew Desmond’s most recent book, Evicted, vividly captures these statistics, drawing attention to the grim housing conditions of families in low-rent units in inner-city Milwaukee who must live with the constant presence of roaches and other vermin, clogged sinks and bathtubs, holes in their windows, and broken front doors.

Rentals occupied by extremely low-income households in central cities have the highest physical inadequacy rates, especially those located in small multifamily buildings with 2-4 units. Indeed, 16 percent of these units were categorized as inadequate, compared to 12 percent of those in buildings with 50 or more units. As I pointed out in a previous post, small multifamilies are a critical source of low-cost housing because they tend to charge lower rents than those in much larger structures, but much of this stock is rather old and at higher risk of loss from the affordable stock due to deterioration.

As this recent NPR piece suggests, the narrow margins for mom-and-pop landlords operating in low-income neighborhoods do not provide sufficient incentive for landlords to make improvements or repairs in a timely manner. Indeed, according to the American Housing Survey, 13 percent of extremely low-income renters reported in 2013 that the owner of their unit usually did not start major repairs or maintenance quickly enough, compared to less than half that share (6 percent) among higher-income renters with incomes above 80 percent of area medians.

The prevalence of housing deficiencies among units occupied by the lowest-income renters highlights the importance of bolstering building code enforcement efforts at the state and local levels. However, municipalities are often faced with tight budgets that lead to dwindling code enforcement teams. Indeed, according to one estimate in 2013, Cleveland and Detroit, among others, have cut their code enforcement workforce by about half since the middle of the last decade. Cities like Baltimore, Portland, and the San Francisco Bay Area are also facing shortages of building inspectors that make it difficult to deal with building code violations. While increased code enforcement can identify landlords who are failing to maintain their properties, this could also lead to unstable housing situations for current tenants. Renters may withhold rent or call local building inspectors as a tactic to push landlords to make necessary repairs, but this could lead to eviction threats or the initiation of a formal eviction process due to nonpayment of rent.

At the federal level, budgetary constraints have also impacted efforts to address the physical deficiencies among the aging public housing stock, which was largely built before 1970. Federal appropriations for the public housing capital fund fell by 34 percent over the past decade and HUD is faced with an estimated backlog of $26 billion in capital maintenance and repairs (as of 2010). HUD’s housing choice voucher and project-based rental assistance programs, which subsidize rentals for low-income households in the private market, require landlords to pass annual or biennial inspections for housing quality. However, the public housing stock is not subject to regular inspections and has largely been prohibited from using private capital to finance capital needs and repairs. As a result, compared to other types of assisted rentals, physical housing problems are more common among the public housing stock. In 2013, over half (53 percent) of public housing units had more than two heating equipment breakdowns lasting at least six hours and 13 percent of units had water leaks due to equipment failures within the previous 12 months.

Living in unsafe, physically inadequate housing can lead to adverse health and developmental outcomes for low-income families. Indeed, recent research confirms that children exposed to defects such as leaking roofs, broken windows, rodents, and nonfunctioning heaters or stoves were more likely to experience emotional and behavioral problems. Among five housing characteristics studied—quality, stability, affordability, ownership, and receipt of housing assistance—poor physical quality of housing was the most consistent and strongest predictor of emotional and behavioral problems in low-income children and adolescents. Poor housing conditions such as mold, chronic dampness, water leaks, and heating, plumbing, and electrical deficiencies, are also associated with health risks like respiratory illness and asthma. These findings underscore the urgent need for cities to prioritize code enforcement and work collaboratively with nonprofit tenants’ rights groups to deal with landlords who are not responsive to requests for necessary repairs.

Tuesday, March 1, 2016

Evicted: Confronting Some Uncomfortable Truths

Managing Director
Matthew Desmond’s new book Evicted: Poverty and Profit in the American City is just being released today, but it has already generated an amazing buzz which started with an article in the New Yorker a few weeks back, and has continued with reviews and commentary in major news outlets across the country. His bottom line conclusion that “without stable shelter everything else falls apart” is a message that housing advocates have long felt keenly. Given that the country’s serious housing challenges have failed to make an appearance at any Presidential debate, the substantial public attention the book is generating is profoundly important.

I got the chance to read an advance copy of the book myself and finished it this past weekend. As someone familiar with Desmond’s work and with a strong interest in trying to bring attention to the desperate straits that some 11 million renter households face by having to devote more than half their income to rent, I expected to be moved by the book’s up-close-and-personal depiction of struggling renters in Milwaukee. While I was certainly moved, what I didn’t expect was how challenged I would be by Desmond’s account.

The Joint Center for Housing Studies has for many years been documenting both the magnitude and consequences of a lack of affordable housing through meticulous analysis of national survey data to help fuel the policy debate. But while numbers may inform the head, they don’t move the heart and so by themselves have a hard time moving the needle on policy. Housing advocates have come to appreciate the importance of personal stories in putting a face on the numbers. The Make Room campaign, launched by Enterprise Community Partners in the past year, is a particularly effective attempt at documenting powerful stories of struggling renters to help sway hearts as well as minds.

Desmond’s stories are also powerful, but in a very different way. The Enterprise campaign focuses on people who have been undone by sickness and other life events outside their control, who struggle to make a decent living, not from lack of trying, but by a lack of good paying jobs. In contrast, Evicted largely tells the story of people who are dealing with what often seem like self-inflicted wounds—drug addiction and questionable choices about how they spend what little money they have, people who are prone to violence and seem to make only sporadic attempts to work. In short, while Enterprise shines on a light on the so-called ‘deserving poor,’ Desmond doesn’t shy away—in fact, seems to seek out—the “undeserving” poor; people whose own families and social networks often refuse to offer assistance.

But through the course of the book, and with the support of hundreds of footnotes that draw on the academic literature and put forth more of Desmond’s own arguments, he builds a convincing case for how the circumstances of grinding poverty lead to choices that otherwise might be hard to understand and how drug addiction and a history of abuse and deprivation exert a powerful tide that is extremely hard to escape. In short, Desmond forces readers to confront their own embedded notions of the “deserving poor.”

One of the most thought-provoking aspects of the book for me was a footnote that confronts this issue directly. Desmond notes that liberals tend to ignore the “nastier, more embarrassing aspects of poverty.” Citing William Julius Wilson, he argues that this approach will ultimately fail to garner support anyway as the public wants to see these behaviors taken into account. Lambasting this approach, Desmond writes, “There are two ways to dehumanize: the first is to strip people of all virtue; the second is to cleanse them of sin.” He’s right. We do need to construct a policy argument that accounts for the sinners as well as the saints—not least of all because no one’s a saint.

Evicted has also challenged my thinking about how the housing market operates at the lowest rungs of the ladder. On its face, the rental market would appear to fit the classic competitive model: there are many buyers and many sellers, information on rent levels is fairly easily available, and there are few barriers to becoming a landlord. Sure, rents are quite high relative to property values, but wouldn’t high maintenance costs, the very real risk of non-payment of rent, and the costs of carrying out evictions account for the high rents? Maybe in part. But the examples Desmond details suggest that, even after taking these costs of doing business into account, the returns earned by landlords are extremely high. The most telling example is the $16,900 house in relatively good condition in a stable block. The mortgage payment on such a small mortgage would be less than $100 monthly. Even with property taxes and maintenance factored in, it wouldn’t take much rent to earn a decent return. And he notes the landlord had acquired other properties for as little as $5,000.

So why aren’t these markets more competitive? One barrier to entry is the lack of access to capital by those who are looking to live in these neighborhoods. Given what’s involved in managing these properties, there may be few landlords who are willing to take on property ownership under these conditions, limiting competition. Landlords also have over a barrel those tenants with a history of eviction, a criminal record, or no visible means of support. With the need for housing so fundamental, landlords can extract the lion’s share of a household’s income. As Desmond notes, researchers have focused a great deal of attention on the provision of subsidized housing but very little on the supply of non-subsidized, low-cost rental housing where a large majority of the poor find their homes. As this book makes clear, this is a major oversight.

So what does Desmond propose as policy responses? To begin with, he advocates for an entitlement program for low-income renters to obtain housing vouchers in the private market. This proposal is actually not that radical, as the Bipartisan Policy Center Housing Commission made this same recommendation. There is a strong case for such a policy, particularly for those at risk of homelessness who are profiled in Evicted. The short-term outcomes report by Abt Associates for the Family Options Study provides compelling evidence that providing housing vouchers to families coming out of the shelter system produces more stable living situations, reduces domestic violence and substance abuse, keeps families together, and reduces the number of school moves among children. And it achieves these results at no greater cost than the traditional assistance families receive coming out of shelters. Desmond also advocates for publicly provided legal assistance for renters in eviction hearings. Given the stories presented in Evicted, there is a clear need to level the playing field between landlords and tenants. If tenants have access to universal vouchers, landlords will have less to worry about in terms of unpaid rent.

The one part of Desmond’s recommendations that puzzled me is that he suggests relaxing housing quality standards as part of a universal voucher program to entice more landlords to participate. He argues in a footnote that in countries where such programs exist without quality standards, tenants are able to use the market power of their voucher to choose higher quality units. But given how the current system exploits renters’ vulnerabilities to accept appalling housing conditions, I would worry about leaving the market to determine this outcome.

In fact, Desmond makes a forceful case that exploitation of the poor thrives when it comes to essentials like housing and food. For that reason it might also have been useful to consider including some recommendations about expanding property ownership among those who would be less likely to exploit the poor—including the poor themselves. In cities like Milwaukee where home prices in inner city neighborhoods are so low, homeownership may be a cost-effective solution for some. More ownership of low-cost rentals by the public or non-profit sectors could also provide needed competition for for-profit landlords.

What’s also missing from his recommendations are supports beyond just rental assistance that are needed to address some of the root causes of instability, such as treatment for addiction and mental health disorders. Housing assistance is a critical step but by itself may not be sufficient to help people become stable tenants. But Desmond is focused on the housing part of the equation and so can’t be faulted for looking at all the ways we need to shore up our social safety net.

Overall, Evicted tells a powerful story and presents persuasive evidence about the fundamental importance of housing instability as a cause and a consequence of poverty, and in the process makes a compelling case for the need to foster housing stability as part of efforts to address poverty. Evicted is that rare book that will generate spirited thought and discussion not only among a general audience but also among those of us who spend a great deal of time trying to understand the critical interplay between housing affordability, poverty, and social mobility.

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On Thursday, March 3 at 6 PM The Malcom Wiener Center for Social Policy at the Harvard Kennedy School is holding a book launch event for “Evicted: Poverty and Profit in the American City” with author Matthew Desmond, Co-director of their Center’s Justice and Poverty Project, along with a distinguished panel. View their event flier >