Full Citation

Title: Socioeconomic and racial disparities in the financial returns to homeownership

Citation Type: Journal Article

Publication Year: 2018

ISBN:

ISSN: 01660462

DOI: 10.1016/j.regsciurbeco.2018.01.003

NSFID:

PMCID:

PMID:

Abstract: In this study we utilize data from over a million ownership spells between 1990 and 2013 in 9 metropolitan areas - Boston, Chicago, Detroit, Los Angeles, Miami, New York, Pittsburgh, San Diego, and San Francisco - to provide what we believe to be the most extensive analysis of the variation in the financial returns to homeownership along racial and socioeconomic dimensions. Holding constant a buyer's purchase price, property type, neighborhood, and purchase and sale timing, we find that capital gains have been systematically lower for low-income and minority home buyers in every market in our sample. In some cases, the unconditional returns realized by these buyers were higher, a phenomenon driven by their higher propensity to purchase lower-priced homes that experienced high levels of appreciation. Taken as whole, our findings call into question the widespread claim that encouraging homeownership for low-income and minority households is a panacea for addressing wealth inequality.

Url: https://www.sciencedirect.com/science/article/pii/S0166046216303519

Url: https://linkinghub.elsevier.com/retrieve/pii/S0166046216303519

User Submitted?: No

Authors: Mayock, Tom; Malacrida, Rachel Spritzer

Periodical (Full): Regional Science and Urban Economics

Issue:

Volume: 70

Pages: 80-96

Data Collections: IPUMS NHGIS

Topics: Race and Ethnicity, Work, Family, and Time

Countries: United States