Living on the Other Side of the Tracks: An Investigation of Public Housing Stereotypes

Abstract

Many ascribe to the concept of “home sweet home”; however, this is an increasingly elusive end state. The economic recession and depressed housing market have resulted in unprecedented numbers of displaced homeowners and an insufficient supply of affordable housing options. As a result of these circumstances, the homeless rate in the United States is at an all-time high, and many jurisdictions report long waiting lists for temporary shelters and subsidized, or “public,” housing. According to research, public housing is often stigmatized, and there are several widely held, negative stereotypes of public housing residents. The authors examine the perceptions of residents when the occupants are renters and the landlord is a governmental entity (i.e., public housing). The authors propose a conceptual model that examines public housing resident stereotypes based on perceivers’ prior knowledge, the propensity to seek out cultural diversity, and demographic characteristics. The findings from an experiment suggest that public housing stereotypes are a function of prior knowledge and diversity-seeking tendencies and that consumers’ diversity-seeking tendencies can be altered in response to certain external, situational stimuli. The authors discuss implications for public policy and consumer welfare.