How (Not) to Allocate Affordable Housing

We describe the wait-list procedure used in Providence and the lotteries used in New York City, and argue that despite their apparent differences, these systems should lead to similar outcomes. Neither approach effectively uses applicants' preferences to guide the allocation. As a result, tenants may frequently be assigned to apartments far from their family or workplace. We describe minor changes to each system that would give applicants a choice of apartments. Although these changes may shift which families receive housing, we argue that this can largely be offset by using observable characteristics to target those most in need.