The American Quest to Dream: Homeownership and the Pursuit of Wealth
Kern, Andreas T
Throughout the twentieth century, policy makers have portrayed homeownership as an inseparable part of the American Dream and Presidential administrations have aimed to increase homeownership rates. Research has focused on comparing the financial outcomes of homeowners to renters, finding that the purchase of a home is more beneficial. Yet, not least the recent burst of the housing bubble demonstrated that tying all wealth in one illiquid asset can bear significant financial risks. Due to higher house price appreciation, regressive federal subsidies, and lower exposure to predatory lending practices, higher income households might benefit from homeownership disproportionately. To analyze the relationship between homeownership and wealth, I compiled a dataset using data from the American Community Survey and Census to match with home value and mortgage debt data at the county level and MSA level. Examining homeownership rates in 2000 and changes in housing wealth 2000-2014, I analyze the financial merits of homeownership for lower and higher income Americans, taking local housing markets into consideration. I find that higher homeownership rates increase housing wealth in higher income counties only and find no effect of homeownership rates on wealth inequality.
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How to Make the American Dream Possible Again: A Quantative Look at the Homeownership and Unemployment Rates in the United States from 2005-2009 Szubrowski, Jennifer Leigh (Georgetown University, 2012)This study explores the relationship between homeownership rates and unemployment rates in the United States from 2005 to 2009 with populations of at least 60,000 through quantitative regression analysis. The study uses ...