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Exits From Homeownership: The Effects Of Race, Ethnicity, And Income

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  • Tracy M. Turner
  • Marc T. Smith

Abstract

ABSTRACT This paper examines the extent to which populations experiencing low homeownership rates in the U.S. also experience high homeownership exit rates. We determine whether low‐income Hispanic and black households that achieve homeownership are as likely as white and high‐income households to sustain it. Using the Panel Study of Income Dynamics spanning the years 1970–2005, we find that low‐income homeowners consistently have higher homeownership exit rates, Hispanic households have higher raw exit rates prior to but not subsequent to 1997, and a black/white sustainability gap appears to arise post‐1997.

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  • Tracy M. Turner & Marc T. Smith, 2009. "Exits From Homeownership: The Effects Of Race, Ethnicity, And Income," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 1-32, February.
  • Handle: RePEc:bla:jregsc:v:49:y:2009:i:1:p:1-32
    DOI: 10.1111/j.1467-9787.2008.00589.x
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    File URL: https://doi.org/10.1111/j.1467-9787.2008.00589.x
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    Cited by:

    1. Piazzesi, M. & Schneider, M., 2016. "Housing and Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 1547-1640, Elsevier.
    2. Eileen Diaz McConnell & Ilana Redstone Akresh, 2013. "Home Equity of New Legal Immigrants in the United States: An Evaluation of Three Key Theoretical Perspectives," International Migration Review, Wiley Blackwell, vol. 47(3), pages 686-729, September.
    3. Bütler, Monika & Stadelmann, Sabrina, 2020. "Building on a pension: Second pillar wealth as a way to finance real estate?," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    4. Casey Dawkins & Jae Sik Jeon & Rolf Pendall, 2015. "Vehicle Access And Exposure To Neighborhood Poverty: Evidence From The Moving To Opportunity Program," Journal of Regional Science, Wiley Blackwell, vol. 55(5), pages 687-707, November.
    5. I-Chun Tsai, 2019. "Interregional correlations in the US housing market at three price tiers," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 1-24, August.
    6. Sarah Riley, 2012. "Land use regulations and the returns to low-income homeownership," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 745-766, December.
    7. 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.
    8. 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).
    9. Christian A. L. Hilber & Tracy M. Turner, 2014. "The Mortgage Interest Deduction and its Impact on Homeownership Decisions," The Review of Economics and Statistics, MIT Press, vol. 96(4), pages 618-637, October.
    10. Hirota, Shinichi & Suzuki-Löffelholz, Kumi & Udagawa, Daisuke, 2020. "Does owners’ purchase price affect rent offered? Experimental evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 25(C).
    11. Kusum Mundra, 2020. "Immigrant and Minority Homeownership Experience: Evidence from the 2009 American Housing Survey," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(1), pages 53-81, January.
    12. Mundra, Kusum, 2013. "Minority and Immigrant Homeownership Experience: Evidence from the 2009 American Housing Survey," IZA Discussion Papers 7131, Institute of Labor Economics (IZA).
    13. 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).
    14. Alan Mallach, 2016. "Is the Urban Middle Neighborhood an Endangered Species? Multiple Challenges and Difficult Answers," Community Development Investment Review, Federal Reserve Bank of San Francisco, issue 01, pages 046-062.
    15. Mohammad Arshad Rahman & Angela Vossmeyer, 2019. "Estimation and Applications of Quantile Regression for Binary Longitudinal Data," Advances in Econometrics, in: Ivan Jeliazkov & Justin L. Tobias (ed.), Topics in Identification, Limited Dependent Variables, Partial Observability, Experimentation, and Flexible Modeling: Part B, volume 40, pages 157-191, Emerald Publishing Ltd.
    16. Bütler, Monika & Stadelmann, Sabrina, 2019. "Building on pension: Second pillar wealth as a way to finance real estate?," Economics Working Paper Series 1913, University of St. Gallen, School of Economics and Political Science, revised Jan 2020.
    17. Martijn Dröes, 2018. "Why Are Housing Demand Curves Upward Sloping?," ERES eres2018_267, European Real Estate Society (ERES).
    18. Turner, Tracy M. & Luea, Heather, 2009. "Homeownership, wealth accumulation and income status," Journal of Housing Economics, Elsevier, vol. 18(2), pages 104-114, June.
    19. Boehm, Thomas P. & Schlottmann, Alan M., 2014. "The dynamics of housing tenure choice: Lessons from Germany and the United States," Journal of Housing Economics, Elsevier, vol. 25(C), pages 1-19.
    20. Chunhui Ren, 2020. "A Framework for Explaining Black-White Inequality in Homeownership Sustainability," Demography, Springer;Population Association of America (PAA), vol. 57(4), pages 1297-1321, August.
    21. Gregory Sharp & Ellen Whitehead & Matthew Hall, 2020. "Tapped Out? Racial Disparities in Extrahousehold Kin Resources and the Loss of Homeownership," Demography, Springer;Population Association of America (PAA), vol. 57(5), pages 1903-1928, October.

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