New research suggests that transforming distressed public housing into mixed-income neighborhoods can deliver long-term economic gains for children—even if it doesn’t immediately raise incomes for current adult residents, The Wall Street Journal writes.
The findings from Harvard economist Raj Chetty and colleagues revisit the federal HOPE VI program, which spent about $17 billion from the 1990s through 2010 to replace aging housing projects with mixed-income developments across the U.S.
While adult earnings for subsidized residents showed little improvement, the long-term outcomes for children tell a different story. Kids who grew up in HOPE VI neighborhoods earned about 16% more as adults, were more likely to attend college, and—for boys—were significantly less likely to be incarcerated. The research suggests the benefits stem less from better housing alone and more from stronger connections to thriving communities.
The results are reshaping debates over housing, mobility and place-based economic development—with implications for policymakers, developers and investors focused on long-term workforce and community outcomes.
The Wall Street Journal has the full story.
