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: Suggested Citation