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Measuring the Benefits of Homeowning: Effects on Children Redux

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  • Richard K. Green
  • Gary Painter
  • Michelle J. White

Abstract

We find that children of homeowners have better outcomes than children of renters whether their parents make a large or small initial investment in their home, as long as they make a minimal down payment when they buy their homes. Children with parents who made no down payment have similar outcomes to children of renters. The effect of homeownership holds up under myriad specifications, measuring initial housing investment as either an LTV ratio or a down payment dollar amount, and controlling for parent and family characteristics and geographic and year fixed effects.

Suggested Citation

  • Richard K. Green & Gary Painter & Michelle J. White, 2012. "Measuring the Benefits of Homeowning: Effects on Children Redux," Working Paper 9102, USC Lusk Center for Real Estate.
    • Handle: RePEc:luk:wpaper:9102
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    File URL: http://lusk.usc.edu/sites/default/files/Measuring-the-Benefits-of-Homeowning-11.05.12.pdf
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    References listed on IDEAS

    as
    1. Rosen, Harvey S & Rosen, Kenneth T, 1980. "Federal Taxes and Homeownership: Evidence from Time Series," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 59-75, February.
    2. Stephen L. Ross & John Yinger, 2002. "The Color of Credit: Mortgage Discrimination, Research Methodology, and Fair-Lending Enforcement," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262182289, December.
    3. Austin Kelly, 2007. "Zero Down Payment Mortgage Default," FHFA Staff Working Papers 07-05, Federal Housing Finance Agency.
    4. Melissa S. Kearney & Phillip B. Levine, 2012. "Why Is the Teen Birth Rate in the United States So High and Why Does It Matter?," Journal of Economic Perspectives, American Economic Association, vol. 26(2), pages 141-163, Spring.
    5. James M. Poterba, 1984. "Tax Subsidies to Owner-Occupied Housing: An Asset-Market Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(4), pages 729-752.
    6. Rosen, Harvey S., 1979. "Housing decisions and the U.S. income tax : An econometric analysis," Journal of Public Economics, Elsevier, vol. 11(1), pages 1-23, February.
    7. Richard K. Green & Eric Rosenblatt & Vincent Yao, 2010. "Sunk Costs and Mortgage Default," Working Paper 9097, USC Lusk Center for Real Estate.
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    Cited by:

    1. Aarland, Kristin & Santiago, Anna Maria & Galster, George C. & Nordvik, Viggo, 2021. "Childhood Housing Tenure and Young Adult Educational Outcomes: Evidence from Sibling Comparisons in Norway," Journal of Housing Economics, Elsevier, vol. 54(C).
    2. Marek Bryx & Janusz Sobieraj & Dominik Metelski & Izabela Rudzka, 2021. "Buying vs. Renting a Home in View of Young Adults in Poland," Land, MDPI, vol. 10(11), pages 1-31, November.
    3. Andra Ghent, 2015. "Home Ownership, Household Leverage and Hyperbolic Discounting," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 43(3), pages 750-781, September.

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    Keywords

    Homeownership; Child Outcomes;

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