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Terminations of First-Time Homeownership

Author

Listed:
  • Donald Haurin

    () (Ohio State University)

  • Abdul Munasib

    () (University of Georgia)

  • Stuart S. Rosenthal

    () (Syracuse University)

Abstract

The clich¨¦ ¡°once a homeowner, always a homeowner¡± is not true. We study the causes of terminations of spells of first-time homeownership.Using a national panel data set, we find that the likelihood of a household terminating a spell of homeownership is predictable at the time of purchase. Specifically, the lower the probability score that a household becomes an owner at the time of purchase, the greater the likelihood of termination of the subsequent ownership spell. This finding suggests that post-purchase counseling programs can be targeted toward those most at risk at the time of home purchase. We also find that post-purchase events affect the likelihood of termination. Important factors include changes in household earnings and wealth, house value, unemployment rates, family size, and marital status. There are substantial racial differences in termination rates. Some of these differences are explained by differences in household characteristics at the time of home purchase, and some by differences in post-purchase events or households¡¯ reactions to them.

Suggested Citation

  • Donald Haurin & Abdul Munasib & Stuart S. Rosenthal, 2007. "Terminations of First-Time Homeownership," Economics Working Paper Series 0702, Oklahoma State University, Department of Economics and Legal Studies in Business.
  • Handle: RePEc:okl:wpaper:0702
    as

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    File URL: https://business.okstate.edu/site-files/docs/ecls-working-papers/0702_Munasib_SustianFHO.pdf
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    References listed on IDEAS

    as
    1. Dietz, Robert D. & Haurin, Donald R., 2003. "The social and private micro-level consequences of homeownership," Journal of Urban Economics, Elsevier, vol. 54(3), pages 401-450, November.
    2. Dougherty, Ann & Van Order, Robert, 1982. "Inflation, Housing Costs, and the Consumer Price Index," American Economic Review, American Economic Association, vol. 72(1), pages 154-164, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    homeownership; sustainability; terminations; housing demand; economic shocks.;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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