IDEAS home Printed from https://ideas.repec.org/a/fip/fedpbr/y1996isepp3-10.html
   My bibliography  Save this article

Taxes, homeownership, and the allocation of residential real estate risks

Author

Listed:
  • Satyajit Chatterjee

Abstract

Home equity is the predominant form of savings for most Americans because it helps them save on taxes. However, homeownership also determines how the risks of fluctuations in the value of residential real estate are borne. In this article, Satyajit Chatterjee looks at how the tax benefit of homeownership has moved households toward undiversified investments in risky residential real estate by making it costly for them to rent their homes. He also points out the often overlooked risk-allocation consequences of proposed changes in the U.S. tax code.

Suggested Citation

  • Satyajit Chatterjee, 1996. "Taxes, homeownership, and the allocation of residential real estate risks," Business Review, Federal Reserve Bank of Philadelphia, issue Sep, pages 3-10.
    • Handle: RePEc:fip:fedpbr:y:1996:i:sep:p:3-10
    as

    Download full text from publisher

    File URL: https://www.philadelphiafed.org/-/media/frbp/assets/economy/articles/business-review/1996/september-october/brso96sc.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yunho Cho & Shuyun May Li & Lawrence Uren, 2021. "Understanding Housing Affordability in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(3), pages 375-386, September.
    2. Dietz, Robert D. & Haurin, Donald R., 2003. "The social and private micro-level consequences of homeownership," Journal of Urban Economics, Elsevier, vol. 54(3), pages 401-450, November.
    3. Wenli Li & Fang Yang, 2010. "American dream or American obsession? The economic benefits and costs of homeownership," Business Review, Federal Reserve Bank of Philadelphia, issue Q3, pages 20-30.
    4. Lewis M. Segal & Daniel G. Sullivan, 1998. "Trends in homeownership: race, demographics, and income," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 22(Q II), pages 53-72.

    More about this item

    Keywords

    Real property; Taxation; Housing;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedpbr:y:1996:i:sep:p:3-10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Beth Paul (email available below). General contact details of provider: https://edirc.repec.org/data/frbphus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.