The Incentives Around Low-Market Housing

Low income renters face a lot of challenges in terms of maintaining stable housing. For those with low incomes, affordable rental units are hard to find, and the competition for such units means that any error or slip-up on the part of the renter could land them on the streets with no where else to go.
In Evicted Matthew Desmond writes, “the high demand for the cheapest housing told landlords that for every family in a unit there were scores behind them ready to take their place. In such an environment, the incentive to lower the rent, forgive a late payment, or spruce up your property was extremely low.” A lack of affordable housing and high competition among low income renters means the incentives for landlords are not in favor of the renters. Landlords know they can boot out a tenant who has young children that cause problems, or a tenant who misses a couple of rent payments, or a tenant who complains too much about problems with the property and quickly find a replacement. There are no incentives to have a nicer property to attract new tenants. There is no incentive to work with a tenant who was just laid off or had unexpected medical bills to repay late rent.
This puts low income renters in dangerous places. They cannot pass up low rent opportunities at units that are in bad condition, because if they pass, someone else will take it and they will be without a place to live. Low income renters cannot afford to have a child break a window, because they may be more likely to be kicked out of the unit than to have the window repaired timely. Additionally, they are unlikely to get a break if they hit an unlucky spell with work or health that prevents them from making rent. In many ways, the incentives around low-income housing lead to unhealthy and exploitative relationships between the poor and their landlords. Throughout Evicted Desmond explores these relationships and the real psychological costs that this reality creates for low income renters.

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