Is Timing Everything? Race, Homeownership and Net Worth in the Tumultuous 2000s

Research output: Contribution to journalArticle

Abstract

We use the Panel Study of Income Dynamics to estimate how net worth was affected among low- and moderate-income households who became first-time homebuyers at different points during the volatile 2000s. We address selection using propensity score matching and estimating difference-in-difference models, and use quantile regressions to account for the skew in net worth outcomes. Results highlight the significance of race in the relationship between first-time home buying and net worth during the decade. Although timing was critical to the short-term trajectory of net worth for whites, total net worth declines for black first-time homebuyers regardless of economic climate. The most dramatic differences between black and white new homebuyers is their neighborhood locations, with blacks purchasing in predominantly black neighborhoods with lower housing prices and price appreciation, and lower and declining rates of homeownership.

Original languageEnglish (US)
JournalReal Estate Economics
DOIs
StateAccepted/In press - 2015

Fingerprint

Home ownership
Net worth
Propensity score matching
Difference-in-differences
Housing prices
Climate
Trajectory
Panel study
Income
Economics
Household income
Quantile regression
Purchasing

ASJC Scopus subject areas

  • Finance
  • Accounting
  • Economics and Econometrics

Cite this

@article{372e8bc176f040d1825645223efa31aa,
title = "Is Timing Everything? Race, Homeownership and Net Worth in the Tumultuous 2000s",
abstract = "We use the Panel Study of Income Dynamics to estimate how net worth was affected among low- and moderate-income households who became first-time homebuyers at different points during the volatile 2000s. We address selection using propensity score matching and estimating difference-in-difference models, and use quantile regressions to account for the skew in net worth outcomes. Results highlight the significance of race in the relationship between first-time home buying and net worth during the decade. Although timing was critical to the short-term trajectory of net worth for whites, total net worth declines for black first-time homebuyers regardless of economic climate. The most dramatic differences between black and white new homebuyers is their neighborhood locations, with blacks purchasing in predominantly black neighborhoods with lower housing prices and price appreciation, and lower and declining rates of homeownership.",
author = "Newman, {Sandra J} and Holupka, {Charles Scott}",
year = "2015",
doi = "10.1111/1540-6229.12118",
language = "English (US)",
journal = "Real Estate Economics",
issn = "1080-8620",
publisher = "Wiley-Blackwell",

}

TY - JOUR

T1 - Is Timing Everything? Race, Homeownership and Net Worth in the Tumultuous 2000s

AU - Newman, Sandra J

AU - Holupka, Charles Scott

PY - 2015

Y1 - 2015

N2 - We use the Panel Study of Income Dynamics to estimate how net worth was affected among low- and moderate-income households who became first-time homebuyers at different points during the volatile 2000s. We address selection using propensity score matching and estimating difference-in-difference models, and use quantile regressions to account for the skew in net worth outcomes. Results highlight the significance of race in the relationship between first-time home buying and net worth during the decade. Although timing was critical to the short-term trajectory of net worth for whites, total net worth declines for black first-time homebuyers regardless of economic climate. The most dramatic differences between black and white new homebuyers is their neighborhood locations, with blacks purchasing in predominantly black neighborhoods with lower housing prices and price appreciation, and lower and declining rates of homeownership.

AB - We use the Panel Study of Income Dynamics to estimate how net worth was affected among low- and moderate-income households who became first-time homebuyers at different points during the volatile 2000s. We address selection using propensity score matching and estimating difference-in-difference models, and use quantile regressions to account for the skew in net worth outcomes. Results highlight the significance of race in the relationship between first-time home buying and net worth during the decade. Although timing was critical to the short-term trajectory of net worth for whites, total net worth declines for black first-time homebuyers regardless of economic climate. The most dramatic differences between black and white new homebuyers is their neighborhood locations, with blacks purchasing in predominantly black neighborhoods with lower housing prices and price appreciation, and lower and declining rates of homeownership.

UR - http://www.scopus.com/inward/record.url?scp=84941711373&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84941711373&partnerID=8YFLogxK

U2 - 10.1111/1540-6229.12118

DO - 10.1111/1540-6229.12118

M3 - Article

AN - SCOPUS:84941711373

JO - Real Estate Economics

JF - Real Estate Economics

SN - 1080-8620

ER -