Macroprudential policies and homeownership

Macroprudential policies are a key policy tool for financial regulators, but concerns persist that these policies restrict access to homeownership. I examine this concern using crosscountry data on homeownership for 28 countries. I find little evidence that macroprudential policies reduce homeownership rates in aggregate or for select groups such as low-income households. The estimates are precise enough to rule out large negative effects of macroprudential policies on homeownership rates. The null effects are consistent with models where credit shocks primarily affect prices rather than quantities. My results alleviate concerns that macroprudential policies systematically exclude certain households from ownership, but also indicate that relaxing such policies is unlikely to increase access to homeownership.