Quote:
Originally Posted by sopas ej
Property owners do benefit from housing vouchers, at least they do with Section 8. With Section 8, a property owner can get up to full-market value for a housing unit, it just comes from 2 different sources---the tenant pays part of the rent while the rest of it is subsidized by the government. That's all Section 8 is, is subsidized private housing. It is NOT real government owned/provided housing, which is what I wish existed instead of Section 8.
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Correct, which is why I said property owners would not benefit *as much*, but the direct effect of increased demand for housing is positive. That said, it comes with risks from their perspective, since your neighbor might become a Section 8 resident and the negative amenity effect of living near Section 8 residents--unreasonable or not--could easily overwhelm the generally positive effect of increased demand for housing.
Why would government owned and provided housing be superior? A $1 spent on government provided housing provides less choice and flexibility to recipients than $1 given in the form of a voucher. Further, as BrownTown said, concentrating poverty has been decisively proven to be a poor strategy.
That said, I do believe that we need real zoning reform because we are overpaying for housing through Section 8. Homeowners restrict development, drive up housing costs artificially, and then charge us extra through Section 8. Which is why in some areas government actually building housing might be better than subsidizing rents, but as we've seen time and again the community is usually pretty effective at driving up the cost of government-provided housing too by adding tons of red tape and demanding amenities that cause the costs to go up to +$500k per unit. Not sustainable.