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American Economic Review Vol. 106 No. 5 2016

Borrowing Constraints and Homeownership

Arthur Acolin1; Jesse Bricker2; Paul Calem3; Susan Wachter4

1 University of Southern California, 650 Childs Way, Los Angeles, CA 90089 (e-mail: ) · 2 Board of Governors of the Federal Reserve System, 20th and C Street, NW, Washington, DC 20551 (e-mail: ) · 3 Federal Reserve Bank of Philadelphia, 10 Independence Mall, Philadelphia, PA 19106 (e-mail: ) · 4 University of Pennsylvania, 430 Vance Hall, 3733 Spruce St., Philadelphia, PA 19104 (e-mail: )

Abstract

This paper identifies the impact of borrowing constraints on homeownership in the U.S. in the aftermath of the 2008 financial crisis. While homeownership declines and tightened credit are evident, the role the tightening of credit has had on the probability of individual households to become homeowners has not been previously identified. The homeownership rate in 2010-2013 is estimated to be 2.3 percentage points lower than if the constraints were set at the 2001 level.

DOI
10.1257/aer.p20161084
Volume
106
Issue
5
Pages
625-629
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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