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Homeownership in the 1980s and 1990s: aggregate trends and racial gaps

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  • Gabriel, Stuart A.
  • Rosenthal, Stuart S.

Abstract

Housing policy under the Clinton and Bush Administrations has sought to boost homeownership while also narrowing racial gaps in owner-occupancy rates. Against that backdrop, homeownership rose sharply in the 1990s, but white-minority gaps remain in excess of 25 percentage points. We analyze these patterns using data from the 1983 to 2001 Survey of Consumer Finances. Results indicate that household characteristics explain most of the increase in homeownership and roughly two-thirds of the white-minority homeownership gap. Credit barriers account for no more than 5 percentage points of the remaining gap. This suggests that policy makers will need to look beyond innovations in mortgage finance if their goal is to further expand homeownership.
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  • Gabriel, Stuart A. & Rosenthal, Stuart S., 2005. "Homeownership in the 1980s and 1990s: aggregate trends and racial gaps," Journal of Urban Economics, Elsevier, vol. 57(1), pages 101-127, January.
  • Handle: RePEc:eee:juecon:v:57:y:2005:i:1:p:101-127
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    Cited by:

    1. Mills, Gregory & Gale, William G. & Patterson, Rhiannon & Engelhardt, Gary V. & Eriksen, Michael D. & Apostolov, Emil, 2008. "Effects of individual development accounts on asset purchases and saving behavior: Evidence from a controlled experiment," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1509-1530, June.
    2. Gobillon, Laurent & Solignac, Matthieu, 2015. "Homeownership of immigrants in France: selection effects related to international migration flows," CEPR Discussion Papers 10975, C.E.P.R. Discussion Papers.
    3. Coulson, N. Edward & Li, Herman, 2013. "Measuring the external benefits of homeownership," Journal of Urban Economics, Elsevier, vol. 77(C), pages 57-67.
    4. Rosenthal, Stuart S. & Ross, Stephen L., 2015. "Change and Persistence in the Economic Status of Neighborhoods and Cities," Handbook of Regional and Urban Economics, Elsevier.
    5. Stuart Gabriel & Gary Painter, 2004. "Mobility, Residential Location, and the American Dream: The Intra-Metropolitan Geography of Minority Homeownership: Los Angeles, Chicago, and Washington D.C," Working Paper 8599, USC Lusk Center for Real Estate.
    6. Bischoff, Oliver, 2012. "Explaining regional variation in equilibrium real estate prices and income," Journal of Housing Economics, Elsevier, vol. 21(1), pages 1-15.
    7. Laurent Gobillon & Matthieu Solignac, 2014. "Homeownership of immigrants in France," ERSA conference papers ersa14p558, European Regional Science Association.
    8. Zorlu, Aslan & Mulder, Clara H. & van Gaalen, Ruben, 2014. "Ethnic disparities in the transition to home ownership," Journal of Housing Economics, Elsevier, vol. 26(C), pages 151-163.
    9. Stephen L. Ross, 2005. "The Continuing Practice and Impact of Discrimination," Working papers 2005-19, University of Connecticut, Department of Economics, revised Jul 2006.
    10. Bostic, Raphael & Gabriel, Stuart & Painter, Gary, 2009. "Housing wealth, financial wealth, and consumption: New evidence from micro data," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 79-89, January.
    11. Christopher J. Mayer & Karen M. Pence, 2008. "Subprime mortgages: what, where, and to whom?," Finance and Economics Discussion Series 2008-29, Board of Governors of the Federal Reserve System (U.S.).
    12. Carrillo, Paul & Yezer, Anthony, 2009. "Alternative measures of homeownership gaps across segregated neighborhoods," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 542-552, September.
    13. repec:hal:wpaper:halshs-01233069 is not listed on IDEAS
    14. Dawkins, Casey J., 2005. "Racial gaps in the transition to first-time homeownership: The role of residential location," Journal of Urban Economics, Elsevier, vol. 58(3), pages 537-554, November.
    15. repec:eee:juecon:v:99:y:2017:i:c:p:120-135 is not listed on IDEAS
    16. 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 for the Study of Labor (IZA).
    17. Hilber, Christian A.L. & Liu, Yingchun, 2008. "Explaining the black-white homeownership gap: The role of own wealth, parental externalities and locational preferences," Journal of Housing Economics, Elsevier, vol. 17(2), pages 152-174, June.
    18. Yongheng Deng & Stuart Gabriel, 2005. "Are Underserved Borrowers Lower Risk? New Evidence on the Performance and Pricing of FHA-Insured Mortgages* (Revised)," Working Paper 8579, USC Lusk Center for Real Estate.
    19. Gabriel, Stuart A. & Kahn, Matthew E. & Vaughn, Ryan K., 2015. "Congressional influence as a determinant of subprime lending," Journal of Housing Economics, Elsevier, vol. 28(C), pages 91-102.
    20. Mundra, Kusum & Uwaifo Oyelere, Ruth, 2016. "Single and Investing: Homeownership Trends among the Never Married," IZA Discussion Papers 9935, Institute for the Study of Labor (IZA).
    21. Andrew F. Haughwout & Christopher J. Mayer & Joseph Tracy, 2009. "Subprime mortgage pricing: the impact of race, ethnicity, and gender on the cost of borrowing," Staff Reports 368, Federal Reserve Bank of New York.
    22. Boustan, Leah P. & Margo, Robert A., 2013. "A silver lining to white flight? White suburbanization and African–American homeownership, 1940–1980," Journal of Urban Economics, Elsevier, vol. 78(C), pages 71-80.
    23. Christopher J. Mayer & Karen Pence, 2008. "Subprime Mortgages: What, Where, and to Whom?," NBER Working Papers 14083, National Bureau of Economic Research, Inc.
    24. Evridiki Tsounta, 2011. "Home Sweet Home; Government's Role in Reaching the American Dream," IMF Working Papers 11/191, International Monetary Fund.

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