Housing Allowances Alone Cannot Prevent Rent Arrears

Abstract

[eng] This article examines the extent to which housing allowances ensure continued access to affordable housing in France. According to data from the 2013 Housing Survey (enquete Logement, Insee), the most recent national housing survey available, one in four recipients of housing allowances experienced financial difficulties during a 24‑month period (compared to one in ten non‑recipients). The safety net role of housing allowances is studied through their effect in the event of job loss. The analysis is based on two points of discon­tinuity in terms of income: the eligibility threshold and the ceiling for the maximum rate of allowance. Probit regression results show that recipients of housing allowances are not significantly better protected. Housing allowances also fail to correct inherent disadvantages across households. In fact, the risk of difficulties in paying rent appears to be linked to a combination of factors: low income, unexpected events, certain family composition and places of residence increases the risk.