In recent years, US policy-makers have given increasing emphasis to ge
ographically dispersing recipients of housing subsidies, based on the
assumption that residence in concentrated poverty neighbour hoods abet
s socially dysfunctional behaviours. The paper assesses this assumptio
n, both theoretically and through a metaanalysis of extant empirical s
tudies. It demonstrates how only modest differences in the functional
relationship between spatially concentrated poverty and resultant soci
ally problematic behaviours will radically affect conclusions about th
e desirability of housing dispersal programmes. Dispersal will only le
ad to a net reduction in problem behaviours in society as a whole if t
he relationship between neighbourhood poverty rate and individual prop
ensity to engage in problem behaviours is characterised by a positive
threshold or by an increasing marginal impact. Three types of empirica
l studies are reviewed in an attempt to ascertain the state of knowled
ge regarding the nature of this functional relationship: (1) case stud
ies of participants in dispersed housing programmes; (2) statistical s
tudies of property value impacts of dispersed housing programmes; and
(3) statistical studies of the neighbourhood correlates of the behavio
ur of individuals. Meta-analysis concludes that the evidence is thin a
nd contradictory. Thus, the US now faces the unenviable situation of h
aving adopted a major housing strategy with only a shred of evidence t
o suggest what effect it might have on aggregate social problems.