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Low-income Homeownership: American Dream or Delusion?

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  • Anne B. Shlay

    (Department of Sociology, Temple University, Gladfelter Hall, 1115 West Berks Street, Philadelphia, PA 19122, USA, ashlay@temple.edu)

Abstract

This paper is a critical analysis of recent US policy to promote low-income homeownership. It examines the ideology and assumptions buttressing this policy, evidence on the effects of low-income homeownership and the viability of homeownership as a strategy for low-income families. Evidence suggests that the prospect for sustained growth in low-income homeownership may be limited. Research does not provide uniform support for it as a tool for asset accumulation, neighbourhood economic development or other social and political goals. Alleged effects of homeownership may be artefacts of self-selection and the conflation of homeownership with unobserved characteristics coincident with buying homes. What homeownership does and why are not well understood because of difficulties disentangling what homeownership means. The elevation of low-income homeownership to its current status has deflected political attention away from alternative policies for affordable housing.

Suggested Citation

  • Anne B. Shlay, 2006. "Low-income Homeownership: American Dream or Delusion?," Urban Studies, Urban Studies Journal Limited, vol. 43(3), pages 511-531, March.
    • Handle: RePEc:sae:urbstu:v:43:y:2006:i:3:p:511-531
    DOI: 10.1080/00420980500452433
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    References listed on IDEAS

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    Cited by:

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    2. Béchir Bouzid, 2010. "Titrisation des emprunts hypothécaires et bulle immobilière aux États-Unis : les origines d’une débâcle," Revue d'Économie Financière, Programme National Persée, vol. 97(2), pages 101-142.
    3. Durba Chakrabarty & Michael J. Osei & John V. Winters & Danyang Zhao, 2019. "Which immigrant and minority homeownership rates are gaining ground in the US?," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 43(2), pages 273-297, April.
    4. Riley, Sarah F. & Ru, Hong Yu & Feng, Qing, 2013. "The User Cost of Low-Income Homeownership," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(2).
    5. Talya D. Thomas, 2018. "Homeownership: What Does Houston Habitat for Humanity Homeowners Have to Say?," Societies, MDPI, vol. 8(3), pages 1-21, September.
    6. Mayock, Tom & Malacrida, Rachel Spritzer, 2018. "Socioeconomic and racial disparities in the financial returns to homeownership," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 80-96.
    7. Chakrabarty, Durba & Osei, Michael J. & Winters, John V. & Zhao, Danyang, 2017. "Are Immigrant and Minority Homeownership Rates Gaining Ground in the US?," IZA Discussion Papers 10852, Institute of Labor Economics (IZA).
    8. Richard Waldron & Declan Redmond, 2016. "Stress in Suburbia: Counting the Costs of Ireland's Property Crash and Mortgage Arrears Crisis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(4), pages 484-501, September.
    9. Greenacre, Luke & Akbar, Skye, 2019. "The impact of payment method on shopping behaviour among low income consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 87-93.
    10. Dangschat, Jens S. & Alisch, Monika, 2014. "Soziale Mischung: Die Lösung von Integrationsherausforderungen?," Forschungsberichte der ARL: Aufsätze, in: Gans, Paul (ed.), Räumliche Auswirkungen der internationalen Migration, volume 3, pages 200-218, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    11. Olsen, Edgar O. & Zabel, Jeffrey E., 2015. "US Housing Policy," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 887-986, Elsevier.
    12. Andrew Carswell, 2009. "Does Housing Counseling Change Consumer Financial Behaviors? Evidence from Philadelphia," Journal of Family and Economic Issues, Springer, vol. 30(4), pages 339-356, December.

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