publication . Article . Research . Preprint . 2009

The homeownership gap

Haughwout, Andrew; Peach, Richard; Tracy, Joseph;
Open Access
  • Published: 01 Jan 2009
  • Publisher: New York, NY: Federal Reserve Bank of New York
Abstract
After rising for a decade, the U.S. homeownership rate peaked at 69 percent in the third quarter of 2006. Over the next two and a half years, as home prices fell in many parts of the country and the unemployment rate rose sharply, the homeownership rate declined by 1.7 percentage points. An important question is, how much more will this rate decline over the current economic downturn? To address this question, we propose the concept of the 'homeownership gap' as a gauge of downward pressure on the homeownership rate. We define the homeownership gap as the difference between the 'official' homeownership rate and a recomputed rate that excludes owners who are in a...
Subjects
free text keywords: mortgages, R31, Homeownership, G21, Home ownership ; Recessions ; Mortgages, Home ownership ; Census ; Economic indicators ; Statistics ; Mortgages, R51, ddc:330

Bergstrom, Theodore C., Daniel L. Rubinfeld, and Perry Shapiro. 1982.

“Micro-Based Estimates of Demand Functions for Local School Expenditures.” Econometrica 50, no. 5 (September): 1183-1205.

DiPasquale, Denise, and Edward L. Glaeser. 1999.“Incentives and Social Capital: Are Homeowners Better Citizens?” Journal of Urban Economics 45, no. 2 (May): 354-84.

Engelhardt, Gary, Michael Eriksen, William Gale, and Gregory Mills. 2010.“What Are the Social Benefits from Homeownership? Experimental Evidence for LowIncome Households.” Journal of Urban Economics 67, no. 3 (May): 249-58.

Ferreira, Fernando, Joseph Gyourko, and Joseph Tracy. 2008.“Housing Busts and Household Mobility.” Federal Reserve Bank of New York Staff Reports, no. 350, October.

Fischel, William A. 2001. The Homevoter Hypothesis: How Home Values Influence Local Government Taxation, School Finance, and Land-Use Policies. Cambridge: Harvard University Press.

Green, Richard, and Michelle White. 1997.“Measuring the Benefits of Homeowning: Effects on Children.” Journal of Urban Economics 41, no. 3 (May): 441-61.

Gyourko, Joseph, and Albert Saiz. 2004.“Reinvestment in the Housing Stock: The Role of Construction Costs and the Supply Side.” Journal of Urban Economics 55, no. 2 (March): 238-56.

Gyourko, Joseph, and Joseph Tracy. 2006.“Using Home Maintenance and Repairs to Smooth Variable Earnings.” Review of Economics and Statistics 88, no. 4 (November): 736-47.

Harding, John C., C. F. Sirmans, and Stuart S. Rosenthal. 2007.“Depreciation of Housing Capital, Maintenance, and House Price Inflation.” Journal of Urban Economics 61, no. 2 (March): 193-217.

Hilber, Christian A. L., and Christopher Mayer. 2009.“Why Do Households without Children Support Local Public Schools? Linking House Price Capitalization to School Spending.” Journal of Urban Economics 65, no. 1 (January): 74-90.

McCarthy, Jonathan, and Richard W. Peach. 2002.“Monetary Policy Transmission to Residential Investment.” Economic Policy Review 8, no. 1 (May): 139-58.

Millman, Joel. 2009.“Immigrants Become Hostages as Gangs Prey on Mexicans.” Wall Street Journal, June 10.

Sachs, Jeffrey. 1990.“A Strategy for Efficient Debt Reduction.” Journal of Economic Perspectives 4, no. 1 (winter): 19-29.

Powered by OpenAIRE Open Research Graph
Any information missing or wrong?Report an Issue
publication . Article . Research . Preprint . 2009

The homeownership gap

Haughwout, Andrew; Peach, Richard; Tracy, Joseph;