Homeownership Rates Research Articles

Is tech-enhanced bikeshare a substitute or complement for public transit?

Technology-enhanced bikeshare features a dockless system with GPS-tracked electric bikes and a mobile app. As an additional transportation mode, it offers users greater accessibility and more flexibility compared to traditional bikeshare. This paper examines the causal impact of a tech-enhanced bikeshare program on public transit ridership, using evidence from a mid-sized metropolitan area in the Midwest of the United States. We use a difference-in-differences identification, exploring the exogenous hourly variation in precipitation and the fact that bicycle usage is limited when precipitation occurs. We find that the initial pedal bicycle fleet with a dockless system increased bus ridership by 1% and the subsequent upgrades to electric bikes further increased bus ridership by an additional 1.1%. The increased bus ridership occurred where and when the travel demand arose, providing suggestive evidence of bikeshare trips solving the first-/last-mile problem. The increased bus ridership occurred mostly in block groups with a lower median household income, a younger population, lower vehicle ownership rate, and lower homeownership rate.

Racial inequity in household energy efficiency and carbon emissions in the United States: An emissions paradox

Residential energy use represents roughly 17% of annual greenhouse gas emissions in the United States (U.S.). Studies show that legacy housing policies and financial lending practices have negatively impacted housing quality and home ownership in non-Caucasian and immigrant communities. Both factors are key determinants of household energy use. But to date there has been no national scale analysis of how race and ethnicity affect household energy use and related carbon emissions. In this paper, we estimate energy use and emissions of 60 million household to clarify how energy efficiency and carbon emissions vary by race, ethnicity, and home ownership. We find that per capita emissions are higher in Caucasian neighborhoods than in African-American neighborhoods, even though the former live in more energy-efficient homes (low energy use intensity). This emissions paradox is explained by differences in building age, rates of home ownership, and floor area in these communities. In African-American neighborhoods, homes are older, home ownership is lower (reducing the likelihood of energy retrofits), and there is less floor area per person compared to Caucasian neighborhoods. Statistical models suggest that historical housing policies, particularly “redlining”, partially explain these differences. We suggest three policies to address this emissions paradox: Government financing of home retrofits, particularly in rental units; Increased access to photovoltaics in disadvantaged communities; and Disincentivizes for high energy consumption and emissions. Addressing this emissions paradox provides an opportunity for an equitable decarbonization of the U.S. housing sector.

Homeownership gap between ethnic minority and Han majority rural migrants in China: integration or stratification?

Housing attainment among rural migrants has received wide attention. However, studies on the homeownership gap between ethnic minority and Han majority rural migrants in China remain unexplored. Using data from National Migrants Population Dynamic Monitoring Survey (NMPDMS), present study applies the logit regression and Blinder–Oaxaca–Fairlie decomposition method to address this. The results suggest that ethnic minority rural migrants are less likely to become homeowners than the Han majority, and that this homeownership gap may differ across various ethnic groups. Compared with the Han majority, the Manchu have a higher probability of owning a home, whereas other ethnic groups are often associated with a lower homeownership rate. Observable socio-economic characteristics play a minor role in this ethnic homeownership gap, whereas most of them are attributable to unobserved factors, such as discrimination.

The Effects of the 1930s HOLC “Redlining” Maps

This study uses a boundary design and propensity score methods to study the effects of the 1930s-era Home Owners Loan Corporation (HOLC) “redlining” maps on the long-run trajectories of urban neighborhoods. The maps led to reduced home ownership rates, house values, and rents and increased racial segregation in later decades. A comparison on either side of a city-level population cutoff that determined whether maps were drawn finds broadly similar conclusions. These results suggest the HOLC maps had meaningful and lasting effects on the development of urban neighborhoods through reduced credit access and subsequent disinvestment. (JEL G21, J15, N32, N42, N92, R23, R31)

Nevertheless, they persist: Cross-country differences in homeownership behavior

Cross-country differences in homeownership rates are large and persistent over time, with homeownership rates ranging from 44% in Switzerland to 83% in Spain. This paper investigates whether cultures—defined as behavioral attitudes passed across generations—may value homeownership differently, and could thus be a driving demand factor of the homeownership decision. To isolate the effect of cultural preferences regarding homeownership from the impact of other economic factors, we investigate second-generation immigrants’ homeownership decisions in the United States between 1994 and 2017. Our findings indicate that cultural preferences for homeownership are persistent, transmitted between generations, and substantially influence the rent-versus-buy decision.

The Costs of Employment Segregation: Evidence from the Federal Government Under Woodrow Wilson

Abstract We link newly digitized personnel records of the U.S. government for 1907–1921 to census data to study the segregation of the civil service by race under President Woodrow Wilson. Using a difference-in-differences design around Wilson’s inauguration, we find that the introduction of employment segregation increased the black-white earnings gap by 3.4–6.9 percentage points. This increasing gap is driven by a reallocation of existing black civil servants to lower-paid positions, lowering their returns to education. Importantly, the negative effects extend beyond Wilson’s presidency. Using census data for 1900–1940, we show that segregation caused a relative decline in the home ownership rate of black civil servants. Moreover, by comparing children of black and white civil servants in adulthood, we provide suggestive evidence that descendants of black civil servants who were exposed to Wilson’s presidency exhibit lower levels of education, earnings, and social mobility. Our combined results thus document significant short- and long-run costs borne by minorities during a unique episode of state-sanctioned discrimination.

The Wealth Gap between Ageing Immigrants and Native-Born in Ten European Countries

Using data from the Survey of Health, Ageing and Retirement in Europe from 10 European countries, this study contributes to the research on immigrants' economic incorporation by focusing on the nativity wealth gaps in mid and late life. Three origin groups of immigrants were distinguished: non-European, post-communist, and West, Central, and South European countries. We estimated the size of the wealth gap between each immigrant population and natives, the sources of the gap, and the trajectory of wealth convergence. The data revealed that the mean net worth of native-born groups was higher than that of all immigrant sub-groups. The gap was widest for non-European immigrants and lowest for West, Central, and South European immigrants. Differences in the rate of homeownership accounted for the largest portion of the gap, while neither differential levels of income nor education accounted for much of the gap between native-born and either non-European immigrants or immigrants from post-communist countries. Reception of gifts or inheritances did not account for a meaningful portion of the gaps. Estimation of the rate of convergence suggests that it would take an average of 85 years after arrival for an average immigrant household to bridge the wealth gap between it and an average native-born household. The rate of wealth convergence was somewhat faster for non-Europeans and slower for West, Central, and South Europeans.

The effect of housing loan subsidies on affordability: Evidence from Croatia

In this paper, we explore whether a program of housing loan subsidies introduced in Croatia contributed to housing price increases. The subsidy was designed to cover a portion of annuities in the initial period of the housing loan repayment, with a distinct feature that a household could apply for the subsidy only during a month-long period. Using a dataset on housing transactions we document that the subsidy disrupted the usual intra-annual dynamics of residential transactions as they became very concentrated in the month when housing loan subsidy applications ended. However, we do not find any descriptive evidence that the aggregate homeownership rate increased. Using an event study approach we find that the housing prices increased just around the introduction of the subsidy, especially in the most developed municipalities which absorbed more than 60% of the subsidies. Exploiting the subsidy built-in implementation rules we identify the effect of the subsidy via a dynamic difference-in-difference approach which corroborates our baseline conclusions. Using the regional variation in the subsidy intensity, we also find that housing price capitalization was driven by prices in areas and regions with already active housing markets. Finally, to discard the possibility that the observed housing price increase is confounded by tourism, we also explore the nexus between tourism and the housing market in Croatia and conclude that our baseline results hold.

The Changing Association Between Homeownership and the Transition to Parenthood.

The literature suggests a positive link between homeownership and the transition to parenthood. However, in recent decades, couples' preference for becoming homeowners before having their first child has been undermined by rising housing unaffordability and housing uncertainty. An archetypal example is Britain, where homeownership rates among young adults have fallen substantially as a result of low wages, unemployment, reductions in the availability of mortgage credit, and rising house prices. This situation has produced a housing crisis. Using longitudinal data from the British Household Panel Survey (1991-2008) and the United Kingdom Household Longitudinal Study (2009-2016), we apply multilevel, discrete-time event-history techniques to a sample of women aged 18-42. We investigate whether and how the link between homeownership and entering parenthood has changed in Britain in recent decades. Our findings reveal that in comparison with the 1990s, the likelihood of becoming a parent has declined among homeowners, whereas childbearing rates among private renters have remained stable. Thus, owner-occupiers and private renters have become more similar in terms of their likelihood of entering parenthood. Overall, our findings question the classical micro-level assumption of a positive link between homeownership and transition to parenthood, at least among Britain's "Generation Rent." These findings are subsequently interpreted in terms of increased housing uncertainty.

The spatial distribution of businesses and neighborhoods: What industries match or mismatch what neighborhoods?

Using the Longitudinal Employer-Household Dynamic (LEHD) and American Community Survey (ACS), we evaluate the spatial relationship between businesses and neighborhoods through exploring the effects of homeownership rates on the job counts of businesses located at various distances to the neighborhoods. The effects of interest are evaluated for neighborhoods of different income levels and businesses of various types. To construct the spatial framework, we first cluster the businesses and then draw residential donut rings of different radii surrounding the business clusters. To control for any fixed locational and temporal features affecting the location choices of both households and businesses, we employ a fixed-effect (FE) identification strategy, where a positive (negative) coefficient suggests that the businesses match (mismatch) the neighborhoods with a higher concentration of homeowners. Our findings show that no industries mismatch the higher-income homeowners, whereas a mismatch exists between their lower-income counterparts and the industries of food and entertainment; the industries that match homeowners of both income groups include retail trade, whole trade, and education. In addition to these three sectors, health, professional services, and entertainment match the higher-income homeowners, whereas construction and transportation match the lower-income ones; for retail trade and whole trade, the matching occurs at a shorter distance between the lower income neighborhoods and businesses. Our results can assist the government in perfecting zoning regulations, developing subsidizing policies, and constructing affordable housing programs.

Willingness of children and adolescents to have a COVID-19 vaccination: Results of a large whole schools survey in England

BackgroundVaccine hesitancy has affected COVID-19 adult vaccination programs in many countries. Data on hesitancy amongst child and adolescent populations is largely confined to parent opinion. We investigated the characteristics of vaccine hesitant children and adolescents using results from a large, school-based self-report survey of the willingness to have a COVID-19 vaccination in students aged 9 –18 years in England.MethodsData from the OxWell Student Survey on mental health, life experiences and behaviours were used, collected from four counties across England. Local authority partners recruited schools. The vaccine hesitancy question gave six response options and were clustered to inform delivery: eager and willing were categorised as vaccination ‘opt-in’, don't know and not bothered categorised as ‘undecided’, and unwilling and anti-vaccination categorised as ‘opt-out’. We conducted a multinomial regression to determine associations between vaccine hesitancy and sociodemographic, health behaviour and social connection variables.Findings27,910 students from 180 schools answered the vaccine hesitancy question between 14th May and 21st July 2021, of whom 13984 (50.1%) would opt-in to take a vaccination, 10322 (37.0%) were undecided, and 3604 (12.9%) would opt-out. A lower percentage of younger students reported that they would opt-in to vaccination, for example, 35.7% of 9-year-olds and 51.3% of 13-year-olds compared to 77.8% of 17-year-olds would opt-in to take a vaccination. Students who were ‘opt-out’ or ‘undecided’ (a combined ‘vaccine hesitant’ group) were more likely to come from deprived socioeconomic contexts with higher rates of home rental versus home ownership and their school locations were more likely to be in areas of greater deprivation. They were more likely to smoke or vape, spend longer on social media, feel that they did not belong in their school community but had lower levels of anxiety and depression. The vaccine hesitant students- the undecided and opt-out groups- were similar in profile, although the opt-out students had higher reported confirmed or probable previous COVID-19 infection than the opt-in group, whereas those undecided, did not.InterpretationIf government vaccination strategies move towards vaccinating younger school-aged students, efforts to increase vaccination uptake may be necessary. Compared with students who would opt-in, those who were vaccine hesitant had greater indicators of social deprivation and felt a lack of community cohesion by not feeling a sense of belonging at their school. There were indications that those students who would opt-out had higher levels of marginalisation and mistrust. If programmes are rolled out, focus on hesitant younger students will be important, targeting more marginalised and deprived young people with information from trusted sources utilising social media; improving access to vaccination centres with provision both in and outside school; and addressing fears and worries about the effects of the vaccine. The main limitation of this study is that the participant group may not be wholly representative of England or the UK, which may bias population-level estimates of willingness to be vaccinated.FundingThe Westminster Foundation, the National Institute for Health Research (NIHR) Applied Research Collaboration Oxford and Thames Valley at Oxford Health NHS Foundation Trust and the NIHR Oxford Health Biomedical Research Centre.

Factors that account for the wealth inequality differences between post-socialist countries

In general, there are significant cross-country differences in wealth inequality. Recent research has documented that household socio-economic characteristics do not explain these differences across advanced economies. Thus, this study is the first to examine the determinants of such disparities in wealth inequality between five post-socialist emerging markets of Central and Eastern Europe (CEE). Based on the findings, the differences in homeownership rates accounted for up to 42% of the cross-country disparities in wealth inequality (when measured with the Gini index) and for as much as 63%–109% of wealth inequalities in the bottom part of the distribution. However, our results are not sensitive to the significant underestimation of top wealth values observed in household survey data. We argue that the differences in homeownership rates among the CEE countries are related, among others, to varying government support for mortgage loans before the global financial crisis (2003–2007) and the degree of government help for indebted households after the crisis.

Household Formation in Canada and the United States: Insights Into Differences by Race, Ethnicity, Immigrant Populations, and Country

ABSTRACT This study focuses on the fastest changing component of housing demand in the future—the immigrant and minority groups, age 25–84. Using the 2006 and 2016 Canadian censuses and American Community Surveys, we compare headship and homeownership rates of both immigrants and native-born Whites in Canada and the United States. We model the probability of being a renter head, owner head, or nonhousehold head by fitting a multinomial logistic regression, controlling for several individual and contextual variables for both countries. We find that most immigrant groups have had similar patterns of household formation in the two countries and that, whereas immigrants have shown upward mobility in both housing markets, those in Canada have progressed more quickly than in the United States. Further, we find that women are less likely than men to be a household head in both countries, but that the gap is larger in Canada.

Homeownership and Students’ Achievement in Public Schools in the U.S. State of Georgia

ABSTRACT We investigate the impact of neighborhood homeownership rates on students’ achievement in public schools in the U.S. state of Georgia. Homeownership and students’ achievement are likely to be endogenously determined at the neighborhood level. We correct for this endogeneity concern using population growth as the instrument for the neighborhood homeownership rate. The findings suggest that a 1-percentage-point increase in homeownership rate at the census tract level increased the percentage of proficient learners and above in third-grade reading by 0.24 percentage points, and the effects are stronger—economically and statistically—in estimates that correct for the endogeneity of neighborhood homeownership rates. Further, the effects of homeownership are much larger in the sample of low-income, less affluent, or more black or African American-dominated neighborhoods, compared with the overall sample.

Understanding the role of homeownership in wealth inequality: Evidence from urban China (1995–2018)

Many scholars have evaluated the wealth creation effects of homeownership over different time periods and have agreed on the positive role of homeownership. However, there are no consistent mechanisms to measure the impact of homeownership on wealth inequality. Based on data from 1995 to 2018, this paper finds that the expansion of the homeownership rate in urban China was an equalizing force in the distribution of wealth from 1995 to 2008, driven by the increased homeownership and housing acquisition of low- and moderate-income households (LMIs) during the era of housing reform in the 1990s. The forces were exogenous and dominated by a redistributive logic. In the post-reform era after 2008, the decline in the homeownership rate led to a concentration of wealth distribution that was driven by the widening wealth gap between owners and non-owners, which represented an endogenous market force. The results indicate that there was an apparent discontinuity of the trends of homeownership and wealth inequality because new immigrants could not afford the price of housing in the cities. The wealth position of the middle and lower classes (mainly new immigrant non-owners) was crippled, not only by the inaccessibility of homeownership, but also by the reinforcing effect of the increase in housing prices. This study reveals the different mechanisms of homeownership on wealth inequality and the policy implications for the redistributive effects of the allocation of housing resources.

One Money, Many Markets

Abstract We study heterogeneity in the transmission of monetary shocks across euro-area (EA) countries using a dynamic factor model and high-frequency identification. Deploying a novel methodology to asses the degree of heterogeneity, we find it to be low in financial variables and output but significant in consumption, consumer prices, and variables related to local housing and labour markets. We show that a large proportion of the variation in the responses to monetary shocks can be accounted for by differences in some characteristics of these markets across EA member countries: the share of adjustable mortgage contracts, homeownership rates, shares of hand-to-mouth and wealthy hand-to-mouth consumers, as well as wage rigidity.

Homeownership out of reach? Intergenerational transfers and homeownership reproduction in middle class families in Rome, Italy

Access to homeownership for young adults is becoming more and more difficult. Italy – where homeownership rates for young adults are steadily decreasing – is a case in point. In the recent past, becoming homeowner was an obvious housing pathway for Italian young adults, even from lower-middle class families. If your parents were homeowner, you became homeowner as well, often with the help of intergenerational transfers. However, the Italian reproduction of homeownership is under severe pressure, as a result of the economic crisis and the subsequent austerity measures. Through in-depth interviews with young adults and their parents, this paper shows how deeply ingrained social expectations and aspirations surrounding homeownership – together with an objective lack of rental options – result in young adults staying longer in their parental home and becoming independent at a later age. This may have a negative impact on the social and economic dynamics within Italian society.

Economic Inequality, the Digital Divide, and Remote Learning During COVID-19.

Wealth and education establish a cycle of intergenerational inequality. Wealthier households can provide more educational opportunities for their children, who then will have more chances to build wealth for themselves. The digital divide may have emerged as a key reinforcing mechanism of education through wealth and of future wealth through education during the pandemic. The intergenerational transmission of racial wealth inequality likely played out at rapid speed during the pandemic. We analyze the link between wealth, reliable internet and electronic device availability, remote learning time, race, and ethnicity, using the U.S. Census Bureau's Household Pulse Survey. We conclude that Black and Hispanic/Latinx households have less reliable internet and devices available. This goes along with fewer hours children spend on remote learning. The lack of internet and devices correlates with less wealth, as reflected in lower homeownership rates and greater housing instability. Black and Hispanic/Latinx households, in particular, are more likely to be renters and face housing instability.

Housing tenure of young people through a multilevel strategy: differences according to living arrangements

ABSTRACT In this study, we identify and analyse the key determinants of the housing tenure regime and residential independence of young adults in Spain. We use a multilevel strategy that allows us to take into account the heterogeneity amongst regions in both homeownership rate and residential independence rate. Our focus is on young adults as this group have a significant effect on the real estate market. Furthermore, young adults are at an age in their life cycle when important events occur. The results show that demographic factors are more important than economic factors in both processes. Also, for these young adults, the sociocultural norms of each region are not the main criteria in housing tenure and residential independence. Given the recent changes seen in the type of cohabitation, we also analyse the housing tenure for different groups of young adults according to their living arrangements (alone, married couple or common-law couple). For young adults living alone, we find there is little variability among regions. Differences are seen in the factors that influence homeownership among young adults who have formalized their union through marriage and those who are part of a common-law couple.

International Real Estate Review

Social housing projects often face the “not-in-my-back-yard” (NIMBY) backlash from the local community who oppose and reject their construction. Considering the prevalence of NIMBY, this study examines the factors that influence the attitude of the public towards social housing construction under high home ownership rates. We conduct an ordered logistic regression analysis by using 14,275 responses from the 2015 Residential Status Survey in Taiwan. The results show some interesting findings. First, home ownership and families with a child under 18 are two of the most influential variables that have significantly negative influences on the approval of social housing construction. Renters and people with physical and mental disabilities are however more supportive of social housing. Secondly, residents in buildings with high development intensity are very supportive of the construction of social housing. Thirdly, satisfaction with neighborhood environment has a positive impact on social housing approval. Finally, residents who live in dense cities tend to support the construction of social housing. However, residents who live in satellite cities of a metropolitan region are less supportive. The results of this study reveal a regional difference in the approval of residents for social housing construction.