Does Homeownership Preserve Wealth for Low- Income and Minority Senior Households?

39 Pages Posted: 4 Jan 2024 Last revised: 19 Jan 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: December 14, 2023

Abstract

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

Eldemire-Poindexter, Ashleigh and Luchtenberg, Kimberly F. and Wynter, Matthew, Does Homeownership Preserve Wealth for Low- Income and Minority Senior Households? (December 14, 2023). 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

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
16
Abstract Views
132
PlumX Metrics