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Have the Doors Opened Wider? Trends in Homeownership Rates by Race and Income

The Journal of Real Estate Finance and Economics volume 23, pages 411–434 (2001)Cite this article

Abstract

Homeownership among U.S. families increased notably in recent years, from 63 percent in 1989 to 66.2 percent in 1998. This article examines this trend and the factors contributing to it. We find that (1) homeownership rose for all racial, ethnic, and income groups; (2) the differences in homeownership between minority and nonminority families and between middle-income and lower-income families declined significantly; and (3) changes in family-related characteristics explain homeownership trends among only the top two income quintiles. Among the lower two income quintiles, family-related characteristics explain almost none of the increase in homeownership. This pattern suggests that the favorable economic climate of the last decade, changes in mortgage and housing markets, and changes in the regulations governing those markets account for the increase in homeownership among lower-income families.

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Authors and Affiliations

  1. Board of Governors of the Federal Reserve System, Mail Stop 153, 20th and C Streets NW, Washington, DC, 20551

    Raphael W. Bostic

  2. Freddie Mac, 8200 Jones Branch Drive, McLean, VA, 22102

    Brian J. Surette

Authors
  1. Raphael W. Bostic
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  2. Brian J. Surette
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Bostic, R.W., Surette, B.J. Have the Doors Opened Wider? Trends in Homeownership Rates by Race and Income. The Journal of Real Estate Finance and Economics 23, 411–434 (2001). https://doi.org/10.1023/A:1017960321898

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  • DOI: https://doi.org/10.1023/A:1017960321898

  • homeownership
  • race
  • income
  • Community Reinvestment Act
  • credit scoring