Housing costs and child functioning: Processes through investments and financial strains

This study used family investment and family stress theories to illuminate mechanisms through which housing costs may affect low-income children's psychosocial and cognitive functioning. Using longitudinal data from the Three City Study (N = 1898), path analyses found support for the investment perspective, with housing and neighborhood contexts mediating associations between higher housing costs and greater behavioral functioning and academic skills. These benefits of higher housing costs were somewhat offset by negative direct associations with children's functioning, although these were not explained by financial strain. Results revealed that receipt of government housing assistance disrupted these pathways. Few differences in patterns emerged between young children and adolescents. Policy implications and future research directions are discussed.