Government Policies and Household Size:  Evidence from New York 

Publication Date: August 2007

Publisher: Furman Center for Real Estate

Author(s): Ingrid Gould Ellen; Brendan O'Flaherty

Research Area: Social conditions

Keywords: household size; Affordable housing

Type: Article

Abstract:

What determines how many adults live in a house? How do people divide themselves up among households? Average household sizes vary substantially, both over time and in the cross-section. In this paper, we describe how a variety of government policies affect living arrangements, intentionally or not. Using data from a survey of households in New York City, we find that these incentives appear to have an impact. Specifically, households receiving these housing and income subsidies are smaller on average (measured by number of adults). The impacts appear to be considerably larger than those that would occur if the programs were lump-sum transfers. Small average household size can be extremely expensive in terms of physical and environmental resources, higher rents, and possibly homelessness. Thus, we encourage policymakers to pay greater heed to the provisions built into various social policies that favor smaller households.