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Credit impairment and housing tenure status

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  • Calem, Paul S.
  • Firestone, Simon
  • Wachter, Susan M.

Abstract

We revisit the relationship between financing constraints and homeownership rates using the 2004 wave of the 1979 National Longitudinal Survey of Youth. The survey respondents are a nationally representative sample of Americans 39-47 years of age as of this wave. As most of the sample had been in their current residence prior to 2004, this study reflects housing tenure status decisions made prior to the recent credit expansion and subsequent crisis. Past research has emphasized wealth constraints, and income constraints as limiting homeownership. The estimation results here point to primary roles for credit impairment and lack of credit history. We also find that excluding controls for the endogeneity of wealth and income may mask the impact of credit factors.

Suggested Citation

  • Calem, Paul S. & Firestone, Simon & Wachter, Susan M., 2010. "Credit impairment and housing tenure status," Journal of Housing Economics, Elsevier, vol. 19(3), pages 219-232, September.
  • Handle: RePEc:eee:jhouse:v:19:y:2010:i:3:p:219-232
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    References listed on IDEAS

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    Cited by:

    1. Barakova, Irina & Calem, Paul S. & Wachter, Susan M., 2014. "Borrowing constraints during the housing bubble," Journal of Housing Economics, Elsevier, vol. 24(C), pages 4-20.
    2. Ambrose, Brent W. & Diop, Moussa, 2014. "Spillover effects of subprime mortgage originations: The effects of single-family mortgage credit expansion on the multifamily rental market," Journal of Urban Economics, Elsevier, vol. 81(C), pages 114-135.
    3. repec:kap:jrefec:v:56:y:2018:i:1:d:10.1007_s11146-016-9595-7 is not listed on IDEAS

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    Keywords

    Tenure choice Credit constraints;

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