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Does Housing Counseling Change Consumer Financial Behaviors? Evidence from Philadelphia

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Abstract

Pre-purchase homeownership counseling is a social service for low- to moderate-income households intent on becoming first-time homeowners. Despite the record number of low- and moderate-income households achieving first-time homeownership over the past decade, there is little research on housing counseling’s effectiveness, in terms of long-term positive financial behaviors. In addition, the research community has traditionally adhered to a proscribed definition of success within programs, which hinders evaluative efforts. This paper examines whether counseled borrowers have experienced financial behavior changes within 5 years after having purchased a home. There were mixed results regarding overall financial behavior changes. Agency identity had little influence on some counselees’ behaviors, while counseling agency characteristics had some limited effects on client behaviors.

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Notes

  1. Staten et al. (2002) addressed a similar need for longitudinal tracking of clients within the credit counseling industry, as well.

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Acknowledgement

The author would like to thank a few of the people that contributed to the completion of this article. Three anonymous reviewers gave extensive, yet helpful comments that undoubtedly strengthened the quality of the final draft. They stand as a testament to the quality of JFEI reviewers. In addition, Nikki Williams gave exact attention to detail and her high professional standards in editing and preparing this document toward its ultimate publication. I am indebted to all of them.

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  1. Department of Housing and Consumer Economics, University of Georgia, 109 Dawson Hall, Athens, GA, 30602, USA

    Andrew T. Carswell

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Correspondence to Andrew T. Carswell.

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Carswell, A.T. Does Housing Counseling Change Consumer Financial Behaviors? Evidence from Philadelphia. J Fam Econ Iss 30, 339–356 (2009). https://doi.org/10.1007/s10834-009-9170-y

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