Homelessness in the US: Economic Impact and Solutions

This episode examines different facets of the housing market and its interconnectedness with broader economic factors. It reviews three recent SSRN papers. One source explores how contractionary monetary policy can lead to higher homeowners’ insurance prices, particularly for financially constrained insurers with interest-rate-sensitive assets, subsequently impacting home prices and mortgage applications. The other source investigates the effects of affordable housing developments (specifically, those financed by Low-Income Housing Tax Credits) on local rental markets, finding no evidence of increased rents in nearby market-rate apartments, and in some cases, even downward pressure on rents. Both highlight the complex interplay of financial mechanisms, policy interventions, and their observable effects on residential real estate.

References

Anguche, Scovia, Homelessness in the United States and its effects on the Economy (November 08, 2024). Available at SSRN: https://ssrn.com/abstract=5092765 or http://dx.doi.org/10.2139/ssrn.5092765

Damast, Dominik and Kubitza, Christian and Sørensen, Jakob Ahm, Homeowners Insurance and the Transmission of Monetary Policy (January 31, 2025). Available at SSRN: https://ssrn.com/abstract=5119139 or http://dx.doi.org/10.2139/ssrn.5119139

An, Brian and Fitzpatrick, Caleb and Jakabovics, Andrew and Orlando, Anthony W. and Rodnyansky, Seva and Voith, Richard and Zielenbach, Sean, The Effects of Affordable Housing Development on Local Rental Markets (April 03, 2025). Available at SSRN: https://ssrn.com/abstract=5204026 or http://dx.doi.org/10.2139/ssrn.5204026

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This episode is based on the references listed above and was generated using Notebook LM and other AI tools. While I have reviewed the content for accuracy, it may still contain errors, inaccuracies, or omissions. Neither the producers nor any affiliates accept liability for any damages or losses arising from the use or interpretation of this content.