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Borrowing Constraints and Homeownership

9 Pages Posted: 22 Jan 2016 Last revised: 3 Aug 2016

Arthur Acolin

University of Southern California - Price School of Public Policy

Jesse Bricker

Board of Governors of the Federal Reserve System

Paul S. Calem

Federal Reserve Banks - Federal Reserve Bank of Philadelphia

Susan M. Wachter

University of Pennsylvania - Wharton School, Department of Real Estate ; University of Pennsylvania - Finance Department

Date Written: January 22, 2016

Abstract

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

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

Arthur Acolin (Contact Author)

University of Southern California - Price School of Public Policy ( email )

Lewis Hall 312
Los Angeles, CA
United States
2152060207 (Phone)

Jesse Bricker

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Paul Calem

Federal Reserve Banks - Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

Susan Wachter

University of Pennsylvania - Wharton School, Department of Real Estate ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104-6330
United States
215-898-6355 (Phone)

HOME PAGE: http://real.wharton.upenn.edu/~wachter/index.html

University of Pennsylvania - Finance Department ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States

HOME PAGE: http://real.wharton.upenn.edu/~wachter/index.html

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