Why Housing Matters for Upward Mobility Evidence and Indicators for Practitioners and Policymakers
Introduction
This document explores the significant relationship between housing and upward mobility, arguing that housing is a critical tool for creating opportunities for individuals, families, and children. It emphasizes that upward mobility is not solely about economic success but also encompasses power, autonomy, and being valued in a community. The analysis highlights how housing can either promote or inhibit mobility, and it presents various metrics that communities can use to measure progress. The document also addresses the impact of structural discrimination on housing policies and the resulting disparities faced by Black people and other people of colour.
Dealing with Housing matters - the concept of upward mobility is defined by three interconnected parts:
- Economic success, which includes income, employment, skills, and family circumstances.
- Power and autonomy, involve agency, stress management, a growth mindset, and physical and mental health.
- Being valued in the community is associated with social connections, social capital, and freedom from trauma.
Structural discrimination, particularly racist housing policies, has created barriers to upward mobility for Black people and other people of colour. Policies like redlining and restrictive covenants have led to significant racial disparities in wealth and limited access to homeownership. Even today, discriminatory treatment in renting and buying persists, along with exclusionary zoning policies, segregation, and a lack of affordable housing. These factors contribute to disinvestment in neighbourhoods of colour, perpetuating social and economic inequality.
The document identifies five key housing goals that influence upward mobility:
- Housing quality: This refers to the physical condition of a housing unit and its ability to protect the health of its residents. Substandard housing, which affects low-income renters and Black households disproportionately, can lead to poor educational performance, health issues, and increased energy costs. Metrics include the number of adequate, moderately inadequate, or severely inadequate units and average blood-lead levels.
- Housing affordability: This relates to a household's ability to pay for adequate housing without excessive financial strain. High housing cost burdens can limit savings, hinder homeownership, cause psychological distress, and reduce spending on food and education. Metrics include the share of families spending more than 30% and 50% of their income on housing. Overcrowding, another aspect of housing affordability, is linked to negative health and academic outcomes for children and can lead to mental health problems. Metrics include the share of occupied units that are crowded or overcrowded and the share of households with multiple families.
- Housing stability: This refers to the ability to stay in one's home without unwanted disruptions. Frequent moves can lead to stress, educational disruptions, job loss and decreased civic engagement. Metrics include the number of moves, student turnover, and eviction rates. Evictions, for instance, significantly impact residents' economic success, mental health, and housing outcomes. Homelessness, as a complete lack of housing stability, has detrimental effects on health, academic achievement, and employment. Metrics include the number of people experiencing homelessness on a single night and those seeking homeless services.
- Housing that builds assets and wealth: Homeownership can provide pathways to upward mobility through building home equity. However, racial disparities persist in homeownership rates due to historical and ongoing discrimination, which limits the wealth-building potential of homeownership for people of colour. Metrics include disparities in homeownership rates by race and ethnicity while homeownership can positively impact children's education, it does not always build equity.
- Neighbourhood context: The location of housing matters and its surrounding neighbourhood can affect residents' access to resources and opportunities. High-opportunity neighbourhoods offer access to quality schools, transportation, and employment while having lower levels of segregation and crime. Various indices, such as the Opportunity 360 Index and the Racial Equity Index, measure neighbourhood conditions related to upward mobility. These indices consider various factors including health, employment, education, and transportation access.
The housing matters in these five housing goals are interconnected, and the overall effect of housing on mobility should be considered holistically. The outcomes are interdependent, and others can influence the impact of one. For example, an unsafe neighbourhood may undermine housing stability, and affordable housing can interact with residential stability.
The document dealing with housing matters also offers recommendations for practitioners and policymakers:
- Use data to understand factors that contribute to upward mobility, and disaggregate data by race to assess equity.
- Look beyond economic success to consider power, autonomy, and the feeling of being valued in the community when assessing programs.
- Be mindful of the "whole housing bundle" of quality, stability, affordability, and neighbourhood context and consider that they may have opposing effects.
- Consider a range of measures for neighbourhood conditions to understand their effect on mobility.
- In conclusion, this document stresses that housing is a crucial determinant of upward mobility, and its impact is multifaceted. By recognising the interconnected nature of housing goals and addressing structural inequalities, communities can create conditions that promote holistic upward mobility for all.
For further reading:
Why Housing Matters for Upward Mobility