Have the Doors Opened Wider? Trends in Homeownership by Race and Income

32 Pages Posted: 4 Oct 2000

Date Written: February 28, 2000


Homeownership among U.S. families increased notably in recent years, from 63.9% in 1989 to 66.2% in 1998. This paper examines this trend and the factors contributing to it. We find that (1) homeownership has risen for all racial, ethnic, and income groups, (2) the differences in homeownership between minority and non-minority families and between middle-income and lower-income families declined significantly, and (3) changes in family-related characteristics explain homeownership trends among only the top two income quintiles. Among the lower two income quintiles, family-related characteristics explain almost none of the increase in homeownership. This pattern of results suggests that changes in mortgage and housing markets and changes in the regulations that govern those markets, such as CRA and HMDA, account for the increase in homeownership among lower-income families.

Keywords: Homeownership, community reinvestment, CRA, home mortgage disclosure act, HMDA, credit scoring

JEL Classification: D12, R11

Suggested Citation

Bostic, Raphael W. and Surette, Brian J., Have the Doors Opened Wider? Trends in Homeownership by Race and Income (February 28, 2000). FEDS Working Paper No. 00-31. Available at SSRN: https://ssrn.com/abstract=235864 or http://dx.doi.org/10.2139/ssrn.235864

Raphael W. Bostic

Federal Reserve Bank of Atlanta

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States

Brian J. Surette (Contact Author)

Freddie Mac ( email )

8200 Jones Branch Road
Mail Stop 484
McLean, VA 22101
United States
703 903-2353 (Phone)
703 903-4045 (Fax)

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