Does Homeownership Preserve Wealth for Low- Income and Minority Senior Households?
39 Pages Posted: 4 Jan 2024 Last revised: 19 Jan 2024
Date Written: December 14, 2023
We use the U.S. Department of Housing and Urban Development’s Housing Choice Voucher program to evaluate whether homeownership preserves wealth among low- income and minority senior households. We apply a within-treatment difference-in- differences framework to establish that homeownership leads to wealth formation for households with children, which reduces the wealth disparities between low-income households. These wealth gains do not occur for senior households without children. We observe similar wealth dynamics for low-income and minority senior households. Thus, we provide evidence that homeownership can be a driver of financial inclusion among low-income senior households that does not inherently increase disparities in wealth.
Keywords: Homeownership, Wealth Inequality, Housing Choice Vouchers
JEL Classification: G51, J15, R21
Suggested Citation: Suggested Citation