The Vulnerability of Minority Homeowners in the Housing Boom and Bust
AbstractThis paper examines mortgage outcomes for a large, representative sample of individual home purchases and refinances linked to credit scores in seven major US markets in the recent housing boom and bust. Among those with similar credit scores, black and Hispanic homeowners had much higher rates of delinquency and default in the downturn. These differences are not readily explained by the likelihood of receiving a subprime loan or by differential exposure to local shocks in the housing and labor market and are especially pronounced for loans originated near the peak of the boom. Our findings suggest that those black and Hispanic homeowners drawn into the market near the peak were especially vulnerable to adverse economic shocks and raise serious concerns about homeownership as a mechanism for reducing racial disparities in wealth.
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Bibliographic InfoPaper provided by Duke University, Department of Economics in its series Working Papers with number 13-7.
Date of creation: 2013
Date of revision:
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Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097
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Other versions of this item:
- Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2014. "The Vulnerability of Minority Homeowners in the Housing Boom and Bust," Working Papers 2014-006, Human Capital and Economic Opportunity Working Group.
- Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2014. "The Vulnerability of Minority Homeowners in the Housing Boom and Bust," Working papers 2014-05, University of Connecticut, Department of Economics.
- Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2013. "The Vulnerability of Minority Homeowners in the Housing Boom and Bust," NBER Working Papers 19020, National Bureau of Economic Research, Inc.
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-19 (All new papers)
- NEP-BAN-2013-05-19 (Banking)
- NEP-URE-2013-05-19 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Why so much policy focus on home ownership?
by Economic Logician in Economic Logic on 2013-05-31 14:54:00
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