Homeownership, Asset-based Welfare and the Neighbourhood Segregation of Wealth

Abstract

The asset-based welfare approach, which has foremost encouraged homeownership, has led to rising homeownership rates, house prices and household debt levels. While this shift has helped raise the net worth of some among the middle and working classes who own property, the implications for the spatial distribution of wealth in cities have not yet been explored. This paper examines the spatial implications of the rise of policies promoting asset-based welfare, by examining statistically how variables related to homeownership rates and housing prices relate to measures of urban wealth segregation among neighbourhoods. Canadian cites are used as the main case study for the empirical analysis. The findings suggest that while homeownership in general has an equalizing effect, rising rates of homeownership (and to some extent, rising house prices) are associated not with greater spatial equalization and dispersal of wealth, but instead with greater spatial segregation and concentration of wealth within cities.