Can Homeownership Help Low-Income Senior Households Preserve Wealth? *

40 Pages Posted: 4 Jan 2024 Last revised: 1 Jun 2024

See all articles by Ashleigh Eldemire-Poindexter

Ashleigh Eldemire-Poindexter

Haslam College of Business, University of Tennessee

Kimberly F. Luchtenberg

American University - Department of Finance and Real Estate

Matthew Wynter

Stony Brook University, College of Business

Date Written: June 01, 2024

Abstract

We show that the U.S. Department of Housing and Urban Development's Housing Choice Voucher Homeownership program leads to wealth formation for low-income senior households with children, which reduces the wealth disparities between lowincome households. We observe similar wealth dynamics for minority senior households, which also retain wealth accumulated as renters as homeowners. We apply a within-treatment framework to establish that these wealth gains occur for the same households relative to their tenure as renters. Thus, we provide causal evidence that homeownership can be a driver of financial inclusion among low-income senior households that can reduce disparities in wealth.

Keywords: Seniors, Homeownership, Wealth Inequality, Housing Choice Vouchers G51, J15, R21

JEL Classification: G51, J15, R21

Suggested Citation

Eldemire-Poindexter, Ashleigh and Luchtenberg, Kimberly F. and Wynter, Matthew, Can Homeownership Help Low-Income Senior Households Preserve Wealth? * (June 01, 2024). Available at SSRN: https://ssrn.com/abstract=4665145

Ashleigh Eldemire-Poindexter

Haslam College of Business, University of Tennessee ( email )

Knoxville, TN 37996
United States

Kimberly F. Luchtenberg (Contact Author)

American University - Department of Finance and Real Estate ( email )

Kogod School of Business
4400 Massachusetts Ave., N.W.
Washington, DC 20016-8044
United States

Matthew Wynter

Stony Brook University, College of Business ( email )

306 Harriman Hall
Stony Brook, NY 11794
United States

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