Long-Term Impacts of Individual Development Accounts on Homeownership Among Baseline Renters: Follow-Up Evidence from a Randomized Experiment

American Economic Journal: Economic Policy 2013, 5(1): 122–145

24 Pages Posted: 28 Jan 2013

See all articles by Michal Grinstein-Weiss

Michal Grinstein-Weiss

University of North Carolina (UNC) at Chapel Hill; Washington University in St. Louis

Michael W. Sherraden

Washington University in St. Louis - George Warren Brown School of Social Work

William G. Gale

Brookings Institution

William Rohe

University of North Carolina (UNC) at Chapel Hill - Center for Urban and Regional Studies; University of North Carolina (UNC) at Chapel Hill - Department of City and Regional Planning

Mark Schreiner

Washington University in St. Louis - Center for Social Development

Clinton Key

University of North Carolina (UNC) at Chapel Hill

Date Written: January 28, 2013

Abstract

We examine the long-term effects of a 1998-2003 randomized experiment in Tulsa, Oklahoma with Individual Development Accounts that offered low-income households 2:1 matching funds for housing down payments. Prior work shows that, among households who rented in 1998, homeownership rates increased more through 2003 in the treatment group than for controls. We show that control group renters caught up rapidly with the treatment group after the experiment ended. As of 2009, the program had an economically small and statistically insignificant effect on homeownership rates, the number of years respondents owned homes, home equity, and foreclosure activity among baseline renters.

JEL Classification: D14, H75, R21, R31

Suggested Citation

Grinstein-Weiss, Michal and Sherraden, Michael W. and Gale, William G. and Rohe, William and Schreiner, Mark Joseph and Key, Clinton, Long-Term Impacts of Individual Development Accounts on Homeownership Among Baseline Renters: Follow-Up Evidence from a Randomized Experiment (January 28, 2013). American Economic Journal: Economic Policy 2013, 5(1): 122–145. Available at SSRN: https://ssrn.com/abstract=2208224

Michal Grinstein-Weiss (Contact Author)

University of North Carolina (UNC) at Chapel Hill ( email )

102 Ridge Road
Chapel Hill, NC NC 27514
United States

Washington University in St. Louis ( email )

One Brookings Drive
Campus Box 1208
Saint Louis, MO MO 63130-4899
United States

Michael W. Sherraden

Washington University in St. Louis - George Warren Brown School of Social Work ( email )

St. Louis, MO 63130
United States
+1 314 935-6691 (Phone)
+1 314 935-8511 (Fax)

William G. Gale

Brookings Institution ( email )

1775 Massachusetts Avenue, NW
Washington, DC 20036
United States
202-797-6148 (Phone)
202-797-6181 (Fax)

William Rohe

University of North Carolina (UNC) at Chapel Hill - Center for Urban and Regional Studies ( email )

108 Battle Ln
CB #3410
Chapel Hill, NC 27599-3410
United States

University of North Carolina (UNC) at Chapel Hill - Department of City and Regional Planning ( email )

New East Building
Chapel Hill, NC 27599-3140
United States

Mark Joseph Schreiner

Washington University in St. Louis - Center for Social Development ( email )

St. Louis, MO 63130
United States
314-935-9778 (Phone)
314-935-8661 (Fax)

Clinton Key

University of North Carolina (UNC) at Chapel Hill ( email )

102 Ridge Road
Chapel Hill, NC NC 27514
United States

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