No rising prices
Stephanie Nunez, 20. Lead researcher at JFI; masters in economics and PhD in sociology. “New working paper explores a UBI in NYC and finds it would not lead to housing inflation.” https://basicincometoday.com/new-working-paper-explores-a-ubi-in-nyc-and-finds-it-would-not-lead-to-housing-inflation/.
Second, and perhaps most interestingly, the authors find that contrary to common assumptions, a UBI does not generate housing market inflation. Instead, the combination of the benefits and taxes lead to a net reduction in rents and housing prices:
Housing consumption (dwelling size) falls by 2.8% and 6.8%. Lower demand for housing leads to lower rents, which fall by 3.8% and 9.0%, and lower house prices, which fall by 1.6% and 3.5%. The ratio of housing expenditures to income also falls, implying that housing becomes more affordable.
Rents go down both absolutely and relative to housing expenditure, leading to an increase in housing affordability. This comes, however, at the cost of a reduction in average dwelling size. These findings suggest that a UBI is unlikely to usher in a wave of inflation, and that pursuing UBI policy in coastal cities suffering from a shortage of affordable housing is not inherently misguided. Here we should note again the power of general equilibrium models to provide counter-intuitive findings; this is very much the opposite result as the one given by an informal partial equilibrium analysis.