Friday, July 3, 2020
US flag

Low-income brainpower goes up where rents go down

It has long been accepted—with little science to back it up—that people should spend roughly a third of their income on housing. It turns out, that’s about how much a low-income family should spend to optimize their children’s intellectual ability, new research, funded by the John D and Catherine T MacArthur Foundation, has shown.


Researchers at Johns Hopkins University in Baltimore explored the effects of affordable housing on the cognitive development, physical health, and emotional well-being of children living in poverty. Though how much a family spent on housing had no affect on a child’s physical or social health, when it came to cognitive ability, it was a game changer.

When a family spent more than half of their income on housing, their children’s reading and math ability tended to suffer, found Sandra J Newman, a Johns Hopkins professor of policy studies, working with researcher C Scott Holupka. Children’s cognitive abilities also took a hit a hit when families spent less than 20 percent of their income on housing.

“Families spending about 30 percent of their income on housing had children with the best cognitive outcomes,” said Newman, who is also director of the university’s Center on Housing, Neighborhoods and Communities. “It’s worse when you pay too little and worse when you pay too much.”

The researchers relied on data from the Panel Study of Income Dynamics and its Child Development Supplements as well as data from the 2004-2009 Consumer Expenditure Surveys. They focused on families with incomes at or below 200 percent of the federal poverty guideline.

The findings are highlighted in two new journal articles, “Housing affordability and investments in children,” published in the Journal of Housing Economics, and “Housing affordability and child well-being,” published in Housing Policy Debate.

More than 88 percent of renters with the lowest incomes spent more than 30 percent of their income on rent, according to the 2009 American Community Survey. And the US Department of Housing and Urban Development’s latest report on affordable housing states household incomes must be at least 105 percent of the area median for a family to find decent, affordable housing units. Families that spent most of their money on housing spent less on things like books, computers and educational outings needed for healthy child development, Newman and Holupka found. Families that didn’t invest enough in housing likely ended up in the sort of distressed neighborhoods and inadequate dwellings that can also take a toll on children.

“The markedly poorer performance of children in families with extremely low housing cost burdens undercuts the housing policy assumption that a lower housing cost burden is always best,” Newman said. “Rather than finding a bargain in a good neighborhood, they’re living in low-quality housing with spillover effects on their children’s development.”

Newman and Holupka found families who had obtained truly affordable housing, spending roughly 30 percent of their income on it, did indeed spend more money on enrichment for their kids.

When a family moved from spending more than half of its income on housing to the 30 percent ideal, they invested an average of $98 more on their children, the researchers found. Not a lot of money, but enough to make a difference. Even when families increased the amount spent on housing—from spending 10 percent of their income to 30 percent—they spent about $170 more on child enrichment.

“People are making trade-offs,” Holupka said, “and those trade-offs have implications for their children.”

Paul Katula is the executive editor of the Voxitatis Research Foundation, which publishes this blog. For more information, see the About page.

Recent posts

Voxitatis congratulates the COVID Class of 2020

2020 is unique and, for high school graduates, different from anything they've seen. Proms, spring sports, & many graduation ceremonies are cancelled. Time for something new.

Vertical addition (m3.nbt.2) math practice

3rd grade, numbers and operations in base 10, 2, 3-digit vertical addition practice problem

Rubber ducks (m3.oa.1) math practice

3rd grade, operational and algebraic thinking, 1, rubber ducky modeling practice problem

Distance learning begins as Covid-19 thrives

What we learn during & from coronavirus, a challenging & imminent crisis, will provide insights into so many aspects of our lives.

Calif. h.s. choir sings with social distancing

Performances with the assistance of technology can spread inspiration across the globe even as the coronavirus spreads illness and disease.

Families plan to stay healthy during closures

Although schools are doing what they can to keep students learning and healthy during the coronavirus outbreak, that duty now shifts to parents.

Illinois temporarily closes all schools

IL schools will be closed on Tuesday, March 17, through at least March 30. Schools in 18 states are now closed due to coronavirus.

Coronavirus closures & cancellations

Many schools are closed and sports tournaments cancelled across America during what the president called a national emergency: coronavirus.

Coronavirus closes schools in Seattle

The coronavirus pandemic has caused colleges to cancel classes, and now Seattle Public Schools became the nation's first large district to cancel classes due to the virus.

Most detailed images ever of the sun

A new telescope at the National Solar Observatory snapped the most detailed pictures of the sun's surface we have ever seen.

Feds boost Bay funding

Restoration efforts in the Chesapeake Bay watershed received a boost in federal funding in the budget Congress passed last month.