Homeownership Boom and Bust 2000 to 2009: Where Will the Homeownership Rate Go from Here?

62 Pages Posted: 14 Jul 2011

See all articles by Stuart A. Gabriel

Stuart A. Gabriel

University of California, Los Angeles - Anderson School of Management

Stuart S. Rosenthal

Syracuse University - Department of Economics

Date Written: July 14, 2011

Abstract

The increase in the homeownership rate in the middle of the last decade extended to all age groups but was most pronounced among individuals under age 30. These increases coincided with looser credit conditions that enhanced household access to mortgage credit along with evidence of less risk averse attitudes towards investment in homeownership. Following the crash, these trends have reversed and homeownership rates have largely reverted back to the levels of 2000. The drop in the homeownership rate from an all-time high of 69.2 in 2004 to 66.4 percent in the first quarter of 2011 reflects a decline from unsustainable levels to something closer to historical averages, and while the homeownership rate may have bottomed out, it could fall another one or two percentage points due to tightened credit and other factors.

Keywords: Homeownership, Credit Conditions, Housing Markets

Suggested Citation

Gabriel, Stuart A. and Rosenthal, Stuart S., Homeownership Boom and Bust 2000 to 2009: Where Will the Homeownership Rate Go from Here? (July 14, 2011). Research Institute for Housing America Research Paper No. 11-03. Available at SSRN: https://ssrn.com/abstract=1885564

Stuart A. Gabriel (Contact Author)

University of California, Los Angeles - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States
310-825-2922 (Phone)
310-206-5455 (Fax)

HOME PAGE: http://www.anderson.ucla.edu

Stuart S. Rosenthal

Syracuse University - Department of Economics ( email )

426 Eggers Hall
Syracuse, NY 13244-1020
United States
315-443-3809 (Phone)

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