9 Pages Posted: 22 Jan 2016 Last revised: 3 Aug 2016
Date Written: January 22, 2016
This paper discusses findings relative to the impact of borrowing constraints on homeownership in the U.S. in the aftermath of the 2008 financial crisis. While homeownership declines and tightened credit are evident, the role the tightening of credit has had on the probability of individual households to become homeowners has not been previously identified. The homeownership rate in 2010-2013 is simulated to be 2.3 percentage points lower than if the constraints were set at the 2001 level.
Keywords: borrowing constraints, homeownership, credit supply
JEL Classification: D12, R21, R31
Suggested Citation: Suggested Citation
Acolin, Arthur and Bricker, Jesse and Calem, Paul S. and Wachter, Susan M., Borrowing Constraints and Homeownership (January 22, 2016). American Economic Review, Vol. 106, No. 5, pp. 625-629, 2016. Available at SSRN: https://ssrn.com/abstract=2720313