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Title: The Future of Headship and Homeownership
Citation Type: Miscellaneous
Publication Year: 2021
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Abstract: Homeownership has historically been the best way for American families to accumulate wealth, though it is not without risks. Homes generally appreciate in value over time, but there have been periods when this was not the case. Borrowers pay down their mortgages and make tangible improvements to accumulate equity and can build additional home value through “sweat equity.” As of 2019, the median net worth of US homeowners was $254,900, 47 percent of which, or $120,000, was home equity.1 Given homeownership’s role as a wealth-building tool, it is important to understand the trajectory of the homeownership rate: where it has been, where it is going, who has benefited, and who has been left behind. Current homeownership rates show a large and growing gap by race and ethnicity: 72 percent of non-Hispanic white households owned homes in 2018, compared with 57 percent of Asian households, 48 percent of Hispanic households, and 42 percent of Black households. Notably, the current homeownership rate for Black households is even lower than it was when fair housing laws were passed in 1968.
User Submitted?: No
Authors: Goodman, Laurie; Zhu, Jun
Publisher: Housing Finance Policy Center
Data Collections: IPUMS USA
Topics: Housing and Segregation
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