Eviction and Poverty in American Cities

Area of Science:

• Socioeconomics
• Public Health
• Urban Studies

Background:

• Over two million U.S. households face eviction annually.
• Policymakers seek eviction reduction due to tenant harm and homelessness costs.
• Pre-eviction trends complicate causal analysis of eviction impacts.

Purpose of the Study:

• To investigate the multifaceted consequences of eviction on tenants.
• To provide empirical evidence for policy decisions regarding eviction.
• To analyze short-term and long-term effects of eviction orders.

Main Methods:

• Utilized linked administrative data from Cook County and New York City.
• Employed an instrumental variables approach using judge leniency as an instrument.
• Analyzed pre-trends to establish baseline tenant conditions.

Main Results:

• Eviction orders correlate with increased homelessness and hospital visits within two years.
• Significant reductions observed in earnings, durable goods consumption, and credit access post-eviction.
• Longer-term effects include increased indebtedness and lower credit scores.
• Disproportionate negative impacts identified for female and Black tenants.

Conclusions:

• Eviction has severe, lasting negative consequences for tenants' financial and health stability.
• The findings underscore the need for policies to mitigate eviction's detrimental effects.
• Targeted interventions may be necessary to address the disproportionate impact on vulnerable populations.