Subsidized Housing and Residential Trajectories: An Application of Matched Sequence Analysis

Scholars have long debated the relative merits of site-based, subsidized housing owned and operated by a public entity or by the private sector. This is the first study to classify long-term residential trajectories of nationally representative low-income households in the United States by their initial assisted housing status. We employ a matched sequence analysis of neighborhood poverty and racial trajectories of low-income households in the Panel Study of Income Dynamics who formed during 1988-1992. Among households carefully matched by their demographic and economic attributes, we find that those first forming households in public housing spend much longer durations over the subsequent 20 years in poorer, minority-dominant neighborhoods than similar households first forming in market-rate housing. In contrast, forming a household in private site-based subsidized housing is associated with superior neighborhood socioeconomic (but not desegregated racial composition) trajectories compared to starting in market-rate housing. Implications for housing policy are discussed.