Roberto Quercia, director of UNC’s Center for Community Capital (CCC), and former CCC Researchers Kim Manturuk and Mark R. Lindblad recently authored A Place Called Home, the first book fully dedicated to a rich, rigorous analysis of the social impacts and non-financial effects of affordable homeownership.
Published by Oxford University Press in October 2017, A Place Called Home argues that homeownership is not only important for financial reasons, but also functions as a social tool that can improve the lives of low- and moderate-income people.
Since the onset of the mortgage lending crisis and the subsequent Great Recession, there has been ongoing debate about the economic benefits of homeownership. Some say homeownership remains an important contributor to wealth creation, while others believe that renting is a less expensive and less risky option. This debate has raised an interesting question about homeownership: if the home is not guaranteed to provide a solid return on investment, is there a rationale for promoting homeownership beyond whatever financial benefits it may deliver?
The dataset used in this study comes from a long-term examination of the Ford Foundation-funded Community Advantage Program, an initiative to provide a secondary market outlet for Community Reinvestment Act loans. On an annual basis, the study collected unique household-level information that allowed the authors to measure the social dimensions of homeownership on low-income families. A result was the observation that homeowners, when compared with renters, have: better health outcomes; experience less stress in times of financial hardship; experience a greater sense of trust in their neighbors; have access to more social capital resources; and are more likely to vote.
A Place Called Home argues that homeownership is not only important for financial reasons, but also functions as a social tool that can improve the lives of low- and moderate-income people.
In an article published in the Journal of Policy Practice, William Rohe, Clinton Key, Michal Grinstein-Weiss, Mark Schreiner and Michael Sherraden analyze data from a randomized controlled experiment involving 1,103 applicants to an Individual development accounts (IDA) program.
IDAs have been adopted in communities across the United States as a way of helping lower-income individuals accrue financial assets. These programs match the savings of program participants if they invest them in the purchase of a home, the creation or expansion of a business, or additional education.
Beyond the financial benefits of holding assets, scholars have argued that they should also result in psychological benefits such as enhanced future orientations and decreased depression. This study tests this argument. The findings show that assignment to the IDA program was not associated with either future orientation or depression 10 years later. The value of assets held at that time, however, was found to be negatively associated with depression. In addition, self-reported financial stress was found to be negatively associated with future orientation and positively associated with depression.
William M. Rohe is director of the UNC Center for Urban and Regional Studies and Cary C. Boshamer Distinguished Professor in the department of city and regional planning at UNC-Chapel Hill. Clinton Key is a researcher with the Pew Charitable Trusts. Michal Grinstein-Weiss is a professor at the Brown School at Washington University in St. Louis. Mark Schreiner is a senior scholar in the Center for Social Development at Washington University in St. Louis and also director of Microfinance Risk Management. Michael Sherraden is the Benjamin E. Youngdahl Professor of Social Development at Washington University in St. Louis.
In this article published in Housing Studies, Mark Lindblad, Hye-Sung Han, Siyun Yu and William M. Rohe use psychological theory to investigate how attitudes toward homebuying relate to first-time home purchases over the past decade.
Homeownership rates in the US have dropped to 20-year lows, but whether views toward homebuying shifted due to the financial crisis is not known because studies have not compared attitudes for the same respondents pre- and post-crisis. The authors address this gap with 2004–2014 panel data from low-income renters. They found that a negative shift in homebuying attitudes is associated with a decline in first-time home purchases. Older renters aged more than 35 years at baseline report the greatest declines in homebuying intentions. Younger renters aged 18–34 also report diminished homebuying intentions, yet express highest overall levels of homebuying intentions pre- and post-crisis. Blacks report greater homebuying intentions although their odds of home purchase are 29 percent lower than whites. Homebuying norms and favorability are associated with homebuying intentions but not with actual purchases, while perceived control over homebuying influences both outcomes.
Mark Lindblad is a research fellow at the UNC Center for Community Capital. Hye-Sung Han is an assistant professor in urban affairs at the University of Missouri-Kansas City (and a Ph.D. graduate from UNC-Chapel Hill). Siyun Yu was awarded her Ph.D. in statistics and operations research at UNC-Chapel Hill in May 2017. William M. Rohe is director of the UNC Center for Urban and Regional Studies and Cary C. Boshamer Distinguished Professor in the department of city and regional planning at UNC-Chapel Hill.