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The portfolios and wealth of low-income homeowners and renters: findings from an evaluation of Self-Help Ventures Fund’s Community Advantage Program

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  • Allison Freeman
  • Jong-Gyu Paik
  • Michael A. Stegman

Abstract

The distribution of wealth in the United States is more highly skewed than the distribution of income. Nowhere is this clearer than in the case of homeowners and renters. Those who own their homes typically have about 20 to 40 times more net wealth than those who rent. ; Although home equity plays a role in this growing disparity, it does not fully explain why renters hold fewer assets than homeowners. Even excluding home equity, renters are more than twice as likely to be asset-poor as are homeowners. Renters also hold a smaller range of assets than owners, suggesting that homeownership \"implies more than home equity, and is associated with the ownership of a wide range of financial assets\".

Suggested Citation

  • Allison Freeman & Jong-Gyu Paik & Michael A. Stegman, 2007. "The portfolios and wealth of low-income homeowners and renters: findings from an evaluation of Self-Help Ventures Fund’s Community Advantage Program," Community Development Working Paper 2007-02, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfcw:2007-02
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    Cited by:

    1. Grinstein-Weiss, Michal & Williams Shanks, Trina R. & Manturuk, Kim R. & Key, Clinton C. & Paik, Jong-Gyu & Greeson, Johann K.P., 2010. "Homeownership and parenting practices: Evidence from the community advantage panel," Children and Youth Services Review, Elsevier, vol. 32(5), pages 774-782, May.
    2. Michal Grinstein-Weiss & Clinton Key & Shenyang Guo & Yeong Hun Yeo & Krista Holub, 2013. "Homeownership and Wealth among Low- and Moderate-Income Households," Housing Policy Debate, Taylor & Francis Journals, vol. 23(2), pages 259-279, April.

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    Keywords

    Home ownership; Rental housing; Wealth;
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