Networks Financial Institute: Working Paper Series: 2012-WP-04
33 Pages Posted: 21 Jun 2012
Date Written: June 21, 2012
Current tax policies, while commonly thought to promote homeownership, have generally left low-income homeowners behind other homeowners. Using a number of simplifying assumptions, our estimates of lifetime homeowner tax subsidies suggest that the average homeowner in the lowest-income quintile may receive cumulative tax subsidies that are roughly one-thirteenth the size of those received by someone in the highest-income quintile. From an asset- and wealth-building perspective, the tax system thus places low-income households at a very large disadvantage – both in their quest to become homeowners and in what happens after they achieve homeownership status.
Suggested Citation: Suggested Citation
Edmiston, Kelly D. and Spong, Kenneth, Promoting Wealth Building Through Homeownership (June 21, 2012). Networks Financial Institute: Working Paper Series: 2012-WP-04. Available at SSRN: https://ssrn.com/abstract=2088897 or http://dx.doi.org/10.2139/ssrn.2088897