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An evaluation of housing options for military families by Richard J. Buddin

By Richard J. Buddin

Army relatives housing is a significant-and expensive-benefit, costing the dept of protection (DoD) approximately $10 billion every year. simply because such a lot housing stories have excited about the price of on-base housing as opposed to the price of supplying allowances for rented or owned off-base housing, the authors investigated the personal tastes of army households for forms of housing and the criteria that impression their offerings. carrier individuals record that the commercial advantages of on-base housing are the main major factor through some distance in housing choice, perceiving an unlimited distinction in price among army housing and off-base housing allowances. All different elements, resembling a supportive feel of army neighborhood, lag a long way at the back of economic climate in influencing selection. final the space in fiscal disparity among on- and off-base housing, and embellishing courses that reduction provider contributors in paying for off-base lodgings, would supply the best profit to providers and participants.

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The task force also recommended that more members be encouraged to live in off-base housing. Before making large investments in military housing, DoD needs to assess not only the costs of housing families on-base but also the benefits to these families. If military housing is more expensive than off-base alternatives, the cost might be warranted by extra benefits that military families accrue in on-base housing. Our study assesses these member preferences for on- and off-base housing options. Costs of Military Housing Prior to the Deputy Secretary's request, there had been several studies of this military housing program, most of them focusing on the relative costs of directly provided housing (''military housing") versus subsidizing the purchase or rental of housing in the local community ("civilian housing").

1 For 1 Congress recently authorized a change in the structure of housing allowances, to be implemented in FY98. Allowances will be based on the price of standardized housing units in each area and will be phased in over a five-year time period. 2 As a result, most bases have an excess demand for military housing and ration their stock of military housing through wait time in a queue. Separate queues are maintained by military rank groups, and members are assigned priorities in the queue as a function of their arrival date at their current base.

O. C. org Page i An Evaluation of Housing Options for Military Families Richard Buddin Carole Roan Gresenz Susan D. Hosek Marc Elliot Jennifer Hawes-Dawson Prepared for the Office of the Secretary of Defense National Defense Research Institute Page iii Preface In 1996, the Deputy Secretary of Defense directed the Under Secretary of Defense (Personnel and Readiness) to conduct a new study of military family housing. Previous studies concentrated on comparing the costs of military-owned housing with housing allowances that are provided to personnel who rent or purchase civilian housing.

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