IDEAS home Printed from https://ideas.repec.org/a/fip/fedcec/88842.html
   My bibliography  Save this article

Subprime May Not Have Caused the 2000s Housing Crisis: Evidence from Cleveland, Ohio

Author

Listed:
  • Lara Loewenstein

Abstract

During the 2000s housing bust, Cleveland’s Slavic Village was dubbed “ground zero of the foreclosure crisis” by the national media. Despite this, during the preceding housing boom Cleveland had stable house price growth and relatively low mortgage debt growth, a stark contrast to circumstances in areas such as California that had exceptionally high house price and mortgage debt growth. What explains the relatively minor housing boom and perceived sharp downturn in Cleveland? In this Commentary I show that while subprime debt was a prominent source of debt in Cleveland and especially in its Slavic Village neighborhood during the 2000s, it is difficult to peg subprime debt as playing a causal role in the subsequent foreclosure crisis.

Suggested Citation

  • Lara Loewenstein, 2020. "Subprime May Not Have Caused the 2000s Housing Crisis: Evidence from Cleveland, Ohio," Economic Commentary, Federal Reserve Bank of Cleveland, vol. 2020(25), pages 1-8, October.
  • Handle: RePEc:fip:fedcec:88842
    DOI: 10.26509/frbc-ec-202025
    as

    Download full text from publisher

    File URL: https://doi.org/10.26509/frbc-ec-202025
    File Function: Full Text
    Download Restriction: no

    More about this item

    Keywords

    housing; crises; subprime;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedcec:88842. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/frbclus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.