Impacts of Low-Income Housing Tax Credit (LIHTC) on the movement of households within urban areas: A gravity model approach in Franklin County, Ohio

Authors: Sohyun Park, Ohio State University, Aram Yang, Ohio State University, Jinhyung Lee*, Western University
Topics: Urban Geography, Geographic Information Science and Systems, Urban and Regional Planning
Keywords: LIHTC, residential mobility, housing policy, gravity model, zero-inflated negative binomial model
Session Type: Virtual Paper
Day: 4/8/2021
Start / End Time: 8:00 AM / 9:15 AM
Room: Virtual 33
Presentation File: No File Uploaded

The Low-Income Housing Tax Credit (LIHTC) program has been the most extensive affordable housing construction program in the U.S. since 1986. As a project-based program, the LIHTC developments are likely to influence residential mobility, but little is known about the process shaping its effects. This study aims to investigate whether LIHTC is effective in attracting heterogenous income groups into LIHTC neighborhoods. Using individual-level household movement data combined with origin-destination neighborhood characteristics, we develop zero-inflated negative binomial (ZINB) models to analyze the impacts of LIHTC on residential mobility patterns in Franklin County, Ohio, USA, from 2011 to 2016. Results suggest that the LIHTC policy attracts low-income households while deterring higher-income households. Also, households still tend to move into neighborhoods socio-economically similar to ones they lived in before despite the LIHTC efforts.

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