Alternative Measures of Homeownership Gaps Across Segregated Neighborhoods

39 Pages Posted: 11 Mar 2012

See all articles by Anthony M. Yezer

Anthony M. Yezer

George Washington University - Department of Economics

Paul E. Carrillo

George Washington University - Department of Economics

Date Written: February 23, 2009

Abstract

The dramatic rise in the U.S. home ownership rate from 64% in 1996 to almost 70% in 2005 has prompted increased attention to the relation between home ownership and demographic characteristics of households. The recent rise and sharp decline of subprime lending will likely spur further interest in home ownership gaps. Statistical analysis of these differences or “gaps” in home ownership between white and minority households has evolved into a highly stylized comparison of differences in home ownership at the mean or the conditional mean. This study implements a quantile decomposition technique that identifies the unexplained portion of the gap not only at the mean, but at every percentile of the home ownership distribution. Results suggest that differences in home ownership gaps at the mean reflect a combination of small differences at the upper end and much larger gaps at the lowest end of the distribution of homeowners. This study also adds credit history to the factors that are used to explain home ownership gaps.

Keywords: Homeownership, Race, Quantile Regression Decomposition

JEL Classification: R21, J15, C15

Suggested Citation

Yezer, Anthony M. and Carrillo, Paul E., Alternative Measures of Homeownership Gaps Across Segregated Neighborhoods (February 23, 2009). Available at SSRN: https://ssrn.com/abstract=2018891 or http://dx.doi.org/10.2139/ssrn.2018891

Anthony M. Yezer (Contact Author)

George Washington University - Department of Economics ( email )

Monroe Hall, Suite 340
2115 G Street, NW
Washington, DC 20052
United States

Paul E. Carrillo

George Washington University - Department of Economics ( email )

Monroe Hall Suite 340
2115 G Street NW
Washington, DC 20052
United States

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