The Spatial Distribution of Housing-Related Ordinary Income Tax Benefits

Joseph Gyourko and Todd Sinai

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Date Published 2003
Primary Author Joseph Gyourko and Todd Sinai
Other Authors
Theme Housing Finance Subsidies


We estimate how tax subsides to owner-occupied housing are distributed spatially across the United States and find striking skewness. At the state level, the mean tax benefit per owned unit in 1990 ranged from $917 in South Dakota to $10,718 in Hawaii. The dispersion is slightly grater when benefit flows are measured at the metropolitan area level. Even assuming the subsidies are funded in an income progressively-neutral manner, a relatively few metro areas, primarily in California and the New York-Boston corridor, are shown to gain considerably while the vast majority of areas have relatively small gains or losses.

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