Skip to main content
Top
Published in: Demography 4/2020

23-07-2020

A Framework for Explaining Black-White Inequality in Homeownership Sustainability

Author: Chunhui Ren

Published in: Demography | Issue 4/2020

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

To explain racially differential housing outcomes, previous studies have tended to concentrate on discriminatory processes within the mortgage market while ignoring homeowning families’ broad socioeconomic challenges. This study proposes a conceptual framework for understanding Black-White inequality in homeownership sustainability, which emphasizes Black homeowners’ socioeconomic challenges that are external to mortgage market evaluations, with a particular focus on the mediating role of liquid assets. Based on the Panel Study of Income Dynamics, the framework is put to an empirical test on the differential exit rates between Black and White homeowners in the United States during the recent housing crisis. The findings indicate that the racial gap in homeownership exit is eliminated after liquid wealth is controlled in the model alongside other covariates and that the inclusion of liquid wealth renders all mortgage-oriented variables nonsignificant with regard to their explanatory power for Black-White inequality in exit rates. Policy implications of the findings are also discussed.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Appendix
Available only for authorised users
Footnotes
1
Compared with European welfare societies, where public rental housing plays a more significant role, U.S. housing policies have consistently focused on increasing private homeownership as part of a new so-called ownership society. For a discussion on the historical evolvement of the ownership society experiment as well as its contemporary challenges in the post-recession era, see Clark (2013) and Forrest and Yip (2011).
 
2
Although Hispanic/Latino homeowners were also hit by the housing crisis (Faber 2013; Rugh 2015), the residential experiences of Hispanic/Latino families are different from those of their African American counterparts in terms of both historical experiences (Jargowsky 1997) and contemporary challenges (Rugh 2015). Thus, this study leaves the specific issues facing Hispanic/Latino homeowners to be explored by other research.
 
3
This is particularly true when it comes to racial inequality: minority homeowners tend to have limited financial resources, benefit less from tax deductions, and have to deal with unexpected home maintenance costs (Herbert and Belsky 2008).
 
4
Insurance coverage serves as a security against health-related financial shocks, which reduces the pressure on home equity (Davidoff 2010). Berger et al. (2015) included health insurance as a predictor variable for homeownership exit, but they did not test its role in explaining racial inequality.
 
5
Hilber and Liu (2008) included parental wealth in modeling the cross-sectionally measured overall racial homeownership gap. Hall and Crowder (2011) discovered significant effects of extended-family resources on racial disparity in transition to homeownership, although no analysis was performed on sustainability.
 
6
Although homeownership sustainability broadly defined implies both the risk of exit and the duration of ownership status, my empirical model tests homeownership exit only, mainly because of this study’s narrow temporal focus on the Great Recession. See Haurin and Rosenthal (2004, 2005) for similar studies on homeownership duration.
 
7
Recent empirical tests based on more specialized surveys showed that race plays a significant role in mortgage-lending decisions even after wealth and asset variables are controlled (Munnell et al. 1996).
 
8
Past studies have tended to handle this by reporting robust standard errors (Berger et al. 2015; Sharp and Hall 2014). Although robust standard errors raise the bar for accepting significant coefficients, they do not correct model misspecification (Fomby and Murfin 2005). That is, robust standard errors help validate a misspecified model only if the model is justified by strong theoretical reasons, which is apparently not the case for this study.
 
9
Haurin and Rosenthal (2004, 2005) defined an observation window as a completed housing tenure spell, which begins at the time of homeownership entry and ends at the time of exit. Turner and Smith (2009) employed a six-year fixed window to observe whether homeownership exit occurs.
 
10
Because PSID surveys collect the information of the year before, the 2007–2013 period reflects an observation window from 2006 to 2012. The national mortgage delinquency rate started to ascend in 2006 and showed no sign of decline until the end of 2012 (Board of Governors of the Federal Reserve System 2018).
 
11
Prior research on racial wealth gaps has sometimes treated the omission of renters as a sample selection bias (Flippen 2001). When it comes to homeownership sustainability, however, taking renters into account faces difficulty in interpreting results: if renters are considered part of the sample, the findings (on homeownership sustainability) should apply to renters as well, which makes little intuitive sense. For that reason, this study deems the renting-to-owning transition as a separate process and strictly focuses on homeowners as the target population.
 
12
Results concerning the potential resampling biases indicate that the final sample is representative of the original sample (online appendix, Table A1).
 
13
Black homeowners account for 25.5% of the sample, far exceeding their representation in the general population. The PSID purposely oversamples African Americans to improve the analytical reliability on issues where Black representation is low (Wilson et al. 2015). Thus, it is a common practice to not apply weights in race-oriented homeownership research (Berger et al. 2015; Boehm and Schlottmann 2004, 2009; Hall and Crowder 2011; Sharp and Hall 2014), and I follow this approach.
 
14
Another option is to apply a survival model, which explores the variation (by two-year intervals) in homeownership duration. However, because this study’s conceptual framework requires (1) a focus on the housing crisis (six-year limited window) and (2) a conceptualization of liquid assets as a time-fixed variable, a survival model will not materialize its major strength—the ability to explore longer-term processes with time-varying predictors—but instead lose the benefits associated with the logistic regression (e.g., compatibility with the conceptual framework, policy convenience, and the ability to assess predictor variables’ mediating effects).
 
15
The sample includes 84 (<3%) families who exited ownership in intermediate years (2009 and 2011) but returned to owning in 2013. These cases with only intermediate tenure changes are considered as “not exiting homeownership” during the study period. Also, excluding them from the sample does not lead to any change in major findings.
 
16
When the dependent variable is measured as a change during a PSID interval, explanatory variables should be measured in their beginning-of-period values to avoid endogeneity. For example, Sharp and Hall (2014) regressed housing tenure change during one PSID window on the changes of a set of predictor variables (e.g., divorce) during the same window, creating a simultaneous causality problem because it is impossible to determine whether divorce causes tenure change or divorce occurs as a result of it.
 
17
Prior research has shown that older families tend to exhibit a higher likelihood of maintaining ownership, but the positive effects of age on sustaining homeownership decline after passing retirement age (Painter and Lee 2009).
 
18
I do not apply an age restriction on the sample because doing so runs the risk of underappreciating elderly homeowners’ financial stress (Danziger et al. 2013). Instead of implementing an arbitrary threshold age, I retain all cases but specify the family head’s labor-market status. In addition, I reestimated the model with different scenarios of age-restricted samples, and findings were consistent (online appendix, Table A2).
 
19
Bank accounts includes money in checking or savings accounts, money market funds, certificates of deposit, government savings bonds, and Treasury bills.
 
20
This measuring strategy minimizes the influence of outlier cases by the PSID’s self-reported data (Rohe et al. 2002) while retaining maximum information. I also tried log-transforming the asset variables, although it caused a substantial sample reduction (3,117 to 2,326) because of the eliminated cases with zero/negative wealth. The two versions of findings are nevertheless consistent. Detailed results are available upon request.
 
21
About 24% of the homeowners in the sample were not holding a mortgage.
 
22
This is not an ideal measurement because housing markets do not operate regionally but within each metropolitan area. Unfortunately, the PSID’s public-access data do not contain metro-specific locational information. Given this study’s focus on nonspatial analyses, the rough measure of geographic controls can be tolerated.
 
23
For a detailed discussion on the KHB method and other solutions, see Karlson et al. (2012) and Williams (2012).
 
24
All analyses of this study are performed using Stata 13. All data sets, syntax, and detailed Stata outputs are available upon request.
 
25
Detailed results are available upon request.
 
26
For a detailed discussion of the baby bond proposal, see Hamilton and Darity (2010).
 
Literature
go back to reference Adelman, R. M. (2005). The roles of race, class, and residential preferences in the neighborhood racial composition of middle-class Blacks and Whites. Social Science Quarterly, 86, 209–228. Adelman, R. M. (2005). The roles of race, class, and residential preferences in the neighborhood racial composition of middle-class Blacks and Whites. Social Science Quarterly, 86, 209–228.
go back to reference Alba, R. D., & Logan, J. R. (1992). Assimilation and stratification in the homeownership patterns of racial and ethnic groups. International Migration Review, 26, 1314–1341. Alba, R. D., & Logan, J. R. (1992). Assimilation and stratification in the homeownership patterns of racial and ethnic groups. International Migration Review, 26, 1314–1341.
go back to reference Apgar, W., & Calder, A. (2005). The dual mortgage market: The persistence of discrimination in mortgage lending. In X. de Souza Briggs (Ed.), The geography of opportunity: Race and housing choice in metropolitan America (pp. 101–123). Washington, DC: Brookings Institution Press. Apgar, W., & Calder, A. (2005). The dual mortgage market: The persistence of discrimination in mortgage lending. In X. de Souza Briggs (Ed.), The geography of opportunity: Race and housing choice in metropolitan America (pp. 101–123). Washington, DC: Brookings Institution Press.
go back to reference Avery, R. B., Brevoort, K. P., & Canner, G. B. (2007). The 2006 HMDA data. Federal Reserve Bulletin, 93, A73–A109. Avery, R. B., Brevoort, K. P., & Canner, G. B. (2007). The 2006 HMDA data. Federal Reserve Bulletin, 93, A73–A109.
go back to reference Bayer, P., Ferreira, F., & Ross, S. L. (2016). The vulnerability of minority homeowners in the housing boom and bust. American Economic Journal: Economic Policy, 8(1), 1–27. Bayer, P., Ferreira, F., & Ross, S. L. (2016). The vulnerability of minority homeowners in the housing boom and bust. American Economic Journal: Economic Policy, 8(1), 1–27.
go back to reference Berger, L. M., Collins, J. M., & Smeeding, T. M. (2015). Exiting or retaining owner-occupied housing in the United States 1999–2009: How do social programs matter? Children and Youth Services Review, 57, 112–126. Berger, L. M., Collins, J. M., & Smeeding, T. M. (2015). Exiting or retaining owner-occupied housing in the United States 1999–2009: How do social programs matter? Children and Youth Services Review, 57, 112–126.
go back to reference Berkovec, J. A., Canner, G. B., Gabriel, S. A., & Hannan, T. H. (1996). Mortgage discrimination and FHA loan performance. Cityscape, 2(1), 9–24. Berkovec, J. A., Canner, G. B., Gabriel, S. A., & Hannan, T. H. (1996). Mortgage discrimination and FHA loan performance. Cityscape, 2(1), 9–24.
go back to reference Besbris, M., & Faber, J. W. (2017). Investigating the relationship between real estate agents, segregation, and house prices: Steering and upselling in New York state. Sociological Forum, 32, 850–873. Besbris, M., & Faber, J. W. (2017). Investigating the relationship between real estate agents, segregation, and house prices: Steering and upselling in New York state. Sociological Forum, 32, 850–873.
go back to reference Besbris, M., & Khan, S. (2017). Less theory. More description. Sociological Theory, 35, 147–153. Besbris, M., & Khan, S. (2017). Less theory. More description. Sociological Theory, 35, 147–153.
go back to reference Bocian, D. G., Li, W., & Ernst, K. S. (2010). Foreclosures by race and ethnicity: The demographics of a crisis (CRL research report). Durham, NC: Center for Responsible Lending. Bocian, D. G., Li, W., & Ernst, K. S. (2010). Foreclosures by race and ethnicity: The demographics of a crisis (CRL research report). Durham, NC: Center for Responsible Lending.
go back to reference Boehm, T. P., & Schlottmann, A. M. (2004). The dynamics of race, income, and homeownership. Journal of Urban Economics, 55, 113–130. Boehm, T. P., & Schlottmann, A. M. (2004). The dynamics of race, income, and homeownership. Journal of Urban Economics, 55, 113–130.
go back to reference Boehm, T. P., & Schlottmann, A. M. (2009). The dynamics of homeownership: Eliminating the gap between African American and White households. Real Estate Economics, 37, 599–634. Boehm, T. P., & Schlottmann, A. M. (2009). The dynamics of homeownership: Eliminating the gap between African American and White households. Real Estate Economics, 37, 599–634.
go back to reference Bostic, R. W., & Lee, K. O. (2008). Mortgages, risk, and homeownership among low- and moderate-income families. American Economic Review: Papers and Proceedings, 98, 310–314. Bostic, R. W., & Lee, K. O. (2008). Mortgages, risk, and homeownership among low- and moderate-income families. American Economic Review: Papers and Proceedings, 98, 310–314.
go back to reference Charles, K. K., & Hurst, E. (2002). The transition to home ownership and the Black-White wealth gap. Review of Economics and Statistics, 84, 281–297. Charles, K. K., & Hurst, E. (2002). The transition to home ownership and the Black-White wealth gap. Review of Economics and Statistics, 84, 281–297.
go back to reference Clancy, M. M., Sherraden, M., Huang, J., Beverly, S. G., & Kim, Y. (2019). Statewide child development accounts and local partnerships: A scalable model that can include all families (CSD Policy Brief No. 19-45). St. Louis, MO: Washington University, Center for Social Development. Clancy, M. M., Sherraden, M., Huang, J., Beverly, S. G., & Kim, Y. (2019). Statewide child development accounts and local partnerships: A scalable model that can include all families (CSD Policy Brief No. 19-45). St. Louis, MO: Washington University, Center for Social Development.
go back to reference Clark, W. A. V. (2013). The aftermath of the general financial crisis for the ownership society: What happened to low-income homeowners in the US? International Journal of Housing Policy, 13, 227–246. Clark, W. A. V. (2013). The aftermath of the general financial crisis for the ownership society: What happened to low-income homeowners in the US? International Journal of Housing Policy, 13, 227–246.
go back to reference Clark, W. A. V. (2019). Millennials in the housing market: The transition to ownership in challenging contexts. Housing, Theory and Society, 36, 206–227. Clark, W. A. V. (2019). Millennials in the housing market: The transition to ownership in challenging contexts. Housing, Theory and Society, 36, 206–227.
go back to reference Cohen, L. (2004). A consumers’ republic: The politics of mass consumption in postwar America. Journal of Consumer Research, 31, 236–239. Cohen, L. (2004). A consumers’ republic: The politics of mass consumption in postwar America. Journal of Consumer Research, 31, 236–239.
go back to reference Collins, J. M., Schmeiser, M. D., & Urban, C. (2013). Protecting minority homeowners: Race, foreclosure counseling and mortgage modifications. Journal of Consumer Affairs, 47, 289–310. Collins, J. M., Schmeiser, M. D., & Urban, C. (2013). Protecting minority homeowners: Race, foreclosure counseling and mortgage modifications. Journal of Consumer Affairs, 47, 289–310.
go back to reference Conley, D. (1999). Being Black, living in the red: Race, wealth, and social policy in America. Berkeley: University of California Press. Conley, D. (1999). Being Black, living in the red: Race, wealth, and social policy in America. Berkeley: University of California Press.
go back to reference Danziger, S., Munnell, A. H., & Rutledge, M. S. (2013). The effects of the Great Recession on the retirement security of older workers. Annals of the American Academy of Political and Social Science, 650, 124–142. Danziger, S., Munnell, A. H., & Rutledge, M. S. (2013). The effects of the Great Recession on the retirement security of older workers. Annals of the American Academy of Political and Social Science, 650, 124–142.
go back to reference Darity, W., Jr., & Hamilton, D. (2012). Bold policies for economic justice. Review of Black Political Economy, 39, 79–85. Darity, W., Jr., & Hamilton, D. (2012). Bold policies for economic justice. Review of Black Political Economy, 39, 79–85.
go back to reference Davidoff, T. (2010). Home equity commitment and long-term care insurance demand. Journal of Public Economics, 94, 44–49. Davidoff, T. (2010). Home equity commitment and long-term care insurance demand. Journal of Public Economics, 94, 44–49.
go back to reference Davis, Morris A. (2012). Questioning homeownership as a public policy goal (SSRN Scholarly Paper, ID 2225948). Rochester, NY: Social Science Research Network. Davis, Morris A. (2012). Questioning homeownership as a public policy goal (SSRN Scholarly Paper, ID 2225948). Rochester, NY: Social Science Research Network.
go back to reference Dawkins, C. J. (2005). Racial gaps in the transition to first-time homeownership: The role of residential location. Journal of Urban Economics, 58, 537–554. Dawkins, C. J. (2005). Racial gaps in the transition to first-time homeownership: The role of residential location. Journal of Urban Economics, 58, 537–554.
go back to reference Dawkins, C. J. (2006). Are social networks the ties that bind families to neighborhoods? Housing Studies, 21, 867–881. Dawkins, C. J. (2006). Are social networks the ties that bind families to neighborhoods? Housing Studies, 21, 867–881.
go back to reference Dieleman, F. M., Clark, W. A. V., & Deurloo, M. C. (1995). Falling out of the home owner market. Housing Studies, 10, 3–15. Dieleman, F. M., Clark, W. A. V., & Deurloo, M. C. (1995). Falling out of the home owner market. Housing Studies, 10, 3–15.
go back to reference Eilbott, P., & Binkowski, E. S. (1985). The determinants of SMSA homeownership rates. Journal of Urban Economics, 17, 293–304. Eilbott, P., & Binkowski, E. S. (1985). The determinants of SMSA homeownership rates. Journal of Urban Economics, 17, 293–304.
go back to reference Ellen, I. G. (2000). Sharing America’s neighborhoods: The prospects for stable racial integration. Cambridge, MA: Harvard University Press. Ellen, I. G. (2000). Sharing America’s neighborhoods: The prospects for stable racial integration. Cambridge, MA: Harvard University Press.
go back to reference Engel, K. C., & McCoy, P. A. (2016). The subprime virus: Reckless credit, regulatory failure, and next steps. Oxford, UK: Oxford University Press. Engel, K. C., & McCoy, P. A. (2016). The subprime virus: Reckless credit, regulatory failure, and next steps. Oxford, UK: Oxford University Press.
go back to reference Faber, J. W. (2013). Racial dynamics of subprime mortgage lending at the peak. Housing Policy Debate, 23, 328–349. Faber, J. W. (2013). Racial dynamics of subprime mortgage lending at the peak. Housing Policy Debate, 23, 328–349.
go back to reference Fields, D., Libman, K., & Saegert, S. (2010). Turning everywhere, getting nowhere: Experiences of seeking help for mortgage delinquency and their implications for foreclosure prevention. Housing Policy Debate, 20, 647–686. Fields, D., Libman, K., & Saegert, S. (2010). Turning everywhere, getting nowhere: Experiences of seeking help for mortgage delinquency and their implications for foreclosure prevention. Housing Policy Debate, 20, 647–686.
go back to reference Flippen, C. A. (2001). Racial and ethnic inequality in homeownership and housing equity. Sociological Quarterly, 42, 121–149. Flippen, C. A. (2001). Racial and ethnic inequality in homeownership and housing equity. Sociological Quarterly, 42, 121–149.
go back to reference Fomby, T. B., & Murfin, J. R. (2005). Inconsistency of HAC standard errors in event studies with i.i.d. errors. Applied Financial Economics Letters, 1, 239–242. Fomby, T. B., & Murfin, J. R. (2005). Inconsistency of HAC standard errors in event studies with i.i.d. errors. Applied Financial Economics Letters, 1, 239–242.
go back to reference Forrest, R., & Yip, N.-M. (2011). Housing markets and the global financial crisis: The uneven impact on households. Cheltenham, UK: Edward Elgar Publishing. Forrest, R., & Yip, N.-M. (2011). Housing markets and the global financial crisis: The uneven impact on households. Cheltenham, UK: Edward Elgar Publishing.
go back to reference Frank, R. H. (1985). Choosing the right pond: Human behavior and the quest for status. New York, NY: Oxford University Press. Frank, R. H. (1985). Choosing the right pond: Human behavior and the quest for status. New York, NY: Oxford University Press.
go back to reference Galster, G. (1990). Racial steering by real estate agents: Mechanisms and motives. Review of Black Political Economy, 19(article 39). Galster, G. (1990). Racial steering by real estate agents: Mechanisms and motives. Review of Black Political Economy, 19(article 39).
go back to reference Gjertson, L. (2016). Emergency saving and household hardship. Journal of Family and Economic Issues, 37, 1–17. Gjertson, L. (2016). Emergency saving and household hardship. Journal of Family and Economic Issues, 37, 1–17.
go back to reference Gross, N. (2009). A pragmatist theory of social mechanisms. American Sociological Review, 74, 358–379. Gross, N. (2009). A pragmatist theory of social mechanisms. American Sociological Review, 74, 358–379.
go back to reference Gyourko, J., & Linneman, P. (1996). Analysis of the changing influences on traditional households’ ownership patterns. Journal of Urban Economics, 39, 318–341. Gyourko, J., & Linneman, P. (1996). Analysis of the changing influences on traditional households’ ownership patterns. Journal of Urban Economics, 39, 318–341.
go back to reference Hall, M., & Crowder, K. (2011). Extended-family resources and racial inequality in the transition to homeownership. Social Science Research, 40, 1534–1546. Hall, M., & Crowder, K. (2011). Extended-family resources and racial inequality in the transition to homeownership. Social Science Research, 40, 1534–1546.
go back to reference Hall, M., Crowder, K., & Spring, A. (2015). Variations in housing foreclosures by race and place, 2005–2012. Annals of the American Academy of Political and Social Science, 660, 217–237. Hall, M., Crowder, K., & Spring, A. (2015). Variations in housing foreclosures by race and place, 2005–2012. Annals of the American Academy of Political and Social Science, 660, 217–237.
go back to reference Hamilton, D., & Darity W., Jr. (2010). Can “baby bonds” eliminate the racial wealth gap in putative post-racial America? Review of Black Political Economy, 37, 207–216. Hamilton, D., & Darity W., Jr. (2010). Can “baby bonds” eliminate the racial wealth gap in putative post-racial America? Review of Black Political Economy, 37, 207–216.
go back to reference Haurin, D. R., & Rosenthal, S. S. (2004). The sustainability of homeownership: Factors affecting the duration of homeownership and rental spells (Report). Washington, DC: U.S. Department of Housing and Urban Development, Office of Policy Development and Research. Haurin, D. R., & Rosenthal, S. S. (2004). The sustainability of homeownership: Factors affecting the duration of homeownership and rental spells (Report). Washington, DC: U.S. Department of Housing and Urban Development, Office of Policy Development and Research.
go back to reference Haurin, D. R., & Rosenthal, S. S. (2005). The growth earnings of low-income households and the sensitivity of their homeownership choices to economic and socio-demographic shocks (Report). Washington, DC: U.S. Department of Housing and Urban Development, Office of Policy Development and Research. Haurin, D. R., & Rosenthal, S. S. (2005). The growth earnings of low-income households and the sensitivity of their homeownership choices to economic and socio-demographic shocks (Report). Washington, DC: U.S. Department of Housing and Urban Development, Office of Policy Development and Research.
go back to reference Haveman, R., & Wolff, E. N. (2005). The concept and measurement of asset poverty: Levels, trends and composition for the U.S., 1983–2001. Journal of Economic Inequality, 2, 145–169. Haveman, R., & Wolff, E. N. (2005). The concept and measurement of asset poverty: Levels, trends and composition for the U.S., 1983–2001. Journal of Economic Inequality, 2, 145–169.
go back to reference Herbert, C. E., & Belsky, E. S. (2008). The homeownership experience of low-income and minority households: A review and synthesis of the literature. Cityscape, 10(2), 5–59. Herbert, C. E., & Belsky, E. S. (2008). The homeownership experience of low-income and minority households: A review and synthesis of the literature. Cityscape, 10(2), 5–59.
go back to reference Hilber, C. A. L., & Liu, Y. (2008). Explaining the Black–White homeownership gap: The role of own wealth, parental externalities and locational preferences. Journal of Housing Economics, 17, 152–174. Hilber, C. A. L., & Liu, Y. (2008). Explaining the Black–White homeownership gap: The role of own wealth, parental externalities and locational preferences. Journal of Housing Economics, 17, 152–174.
go back to reference Hirschl, T. A., & Rank, M. R. (2010). Homeownership across the American life course: Estimating the racial divide. Race and Social Problems, 2, 125–136. Hirschl, T. A., & Rank, M. R. (2010). Homeownership across the American life course: Estimating the racial divide. Race and Social Problems, 2, 125–136.
go back to reference Horne, D. K. (1994). Evaluating the role of race in mortgage lending. FDIC Banking Review, 7(1), 1–15. Horne, D. K. (1994). Evaluating the role of race in mortgage lending. FDIC Banking Review, 7(1), 1–15.
go back to reference Hurst, E., & Stafford, F. P. (2005). Home is where the equity is: Mortgage refinancing and household consumption. Journal of Money, Credit, and Banking, 36, 985–1014. Hurst, E., & Stafford, F. P. (2005). Home is where the equity is: Mortgage refinancing and household consumption. Journal of Money, Credit, and Banking, 36, 985–1014.
go back to reference Immergluck, D. (2011). Foreclosed: High-risk lending, deregulation, and the undermining of America’s mortgage market. Ithaca, NY: Cornell University Press. Immergluck, D. (2011). Foreclosed: High-risk lending, deregulation, and the undermining of America’s mortgage market. Ithaca, NY: Cornell University Press.
go back to reference Jargowsky, P. A. (1997). Poverty and place: Ghettos, barrios, and the American city. New York, NY: Russell Sage Foundation. Jargowsky, P. A. (1997). Poverty and place: Ghettos, barrios, and the American city. New York, NY: Russell Sage Foundation.
go back to reference Karlson, K. B., Holm, A., & Breen, R. (2012). Comparing regression coefficients between same-sample nested models using logit and probit: A new method. Sociological Methodology, 42, 286–313. Karlson, K. B., Holm, A., & Breen, R. (2012). Comparing regression coefficients between same-sample nested models using logit and probit: A new method. Sociological Methodology, 42, 286–313.
go back to reference Krivo, L. J., & Kaufman, R. L. (2004). Housing and wealth inequality: Racial-ethnic differences in home equity in the United States. Demography, 41, 585–605. Krivo, L. J., & Kaufman, R. L. (2004). Housing and wealth inequality: Racial-ethnic differences in home equity in the United States. Demography, 41, 585–605.
go back to reference Kuebler, M., & Rugh, J. S. (2013). New evidence on racial and ethnic disparities in homeownership in the United States from 2001 to 2010. Social Science Research, 42, 1357–1374. Kuebler, M., & Rugh, J. S. (2013). New evidence on racial and ethnic disparities in homeownership in the United States from 2001 to 2010. Social Science Research, 42, 1357–1374.
go back to reference LaCour-Little, M. (1999). Discrimination in mortgage lending: A critical review of the literature. Journal of Real Estate Literature, 7, 15–49. LaCour-Little, M. (1999). Discrimination in mortgage lending: A critical review of the literature. Journal of Real Estate Literature, 7, 15–49.
go back to reference Ladd, H. F. (1998). Evidence on discrimination in mortgage lending. Journal of Economic Perspectives, 12(2), 41–62. Ladd, H. F. (1998). Evidence on discrimination in mortgage lending. Journal of Economic Perspectives, 12(2), 41–62.
go back to reference Longhofer, S. D. (1996). Discrimination in mortgage lending: What have we learned? (Economic Commentary report). Cleveland, OH: Federal Reserve Bank of Cleveland. Longhofer, S. D. (1996). Discrimination in mortgage lending: What have we learned? (Economic Commentary report). Cleveland, OH: Federal Reserve Bank of Cleveland.
go back to reference Lovenheim, M. F. (2011). The effect of liquid housing wealth on college enrollment. Journal of Labor Economics, 29, 741–771. Lovenheim, M. F. (2011). The effect of liquid housing wealth on college enrollment. Journal of Labor Economics, 29, 741–771.
go back to reference Massey, D. S., & Denton, N. A. (1993). American apartheid: Segregation and the making of the underclass. Cambridge, MA: Harvard University Press. Massey, D. S., & Denton, N. A. (1993). American apartheid: Segregation and the making of the underclass. Cambridge, MA: Harvard University Press.
go back to reference McKernan, S.-M., & Sherraden, M. (Eds.). (2008). Asset building and low-income families. Washington, DC: The Urban Institute Press. McKernan, S.-M., & Sherraden, M. (Eds.). (2008). Asset building and low-income families. Washington, DC: The Urban Institute Press.
go back to reference Mood, C. (2010). Logistic regression: Why Besbris cannot do what we think we can do, and what we can do about it. European Sociological Review, 26, 67–82. Mood, C. (2010). Logistic regression: Why Besbris cannot do what we think we can do, and what we can do about it. European Sociological Review, 26, 67–82.
go back to reference Munnell, A. H., Tootell, G. M. B., Browne, L. E., & McEneaney, J. (1996). Mortgage lending in Boston: Interpreting HMDA data. American Economic Review, 86, 25–53. Munnell, A. H., Tootell, G. M. B., Browne, L. E., & McEneaney, J. (1996). Mortgage lending in Boston: Interpreting HMDA data. American Economic Review, 86, 25–53.
go back to reference Oliver, M. L., & Shapiro, T. M. (2006). Black wealth/White wealth: A new perspective on racial inequality (10th Anniversary ed.). New York, NY: Routledge. Oliver, M. L., & Shapiro, T. M. (2006). Black wealth/White wealth: A new perspective on racial inequality (10th Anniversary ed.). New York, NY: Routledge.
go back to reference Painter, G., & Lee, K. O. (2009). Housing tenure transitions of older households: Life cycle, demographic, and familial factors. Regional Science and Urban Economics, 39, 749–760. Painter, G., & Lee, K. O. (2009). Housing tenure transitions of older households: Life cycle, demographic, and familial factors. Regional Science and Urban Economics, 39, 749–760.
go back to reference Pilkauskas, N. V., Currie, J. M., & Garfinkel, I. (2012). The Great Recession, public transfers, and material hardship. Social Service Review, 86, 401–427. Pilkauskas, N. V., Currie, J. M., & Garfinkel, I. (2012). The Great Recession, public transfers, and material hardship. Social Service Review, 86, 401–427.
go back to reference Quercia, R. G., Stegman, M. A., & Davis, W. R. (2007). The impact of predatory loan terms on subprime foreclosures: The special case of prepayment penalties and balloon payments. Housing Policy Debate, 18, 311–346. Quercia, R. G., Stegman, M. A., & Davis, W. R. (2007). The impact of predatory loan terms on subprime foreclosures: The special case of prepayment penalties and balloon payments. Housing Policy Debate, 18, 311–346.
go back to reference Ren, C. (2019a). After poverty reduction: Trajectories of U.S. urban neighborhoods that escaped high poverty during the 1990s. Urban Research & Practice, 12, 113–136. Ren, C. (2019a). After poverty reduction: Trajectories of U.S. urban neighborhoods that escaped high poverty during the 1990s. Urban Research & Practice, 12, 113–136.
go back to reference Ren, C. (2019b). Fluctuating courses and constant challenges: The two trajectories of Black-White earnings inequality, 1968–2015. Social Science Research, 77, 30–44. Ren, C. (2019b). Fluctuating courses and constant challenges: The two trajectories of Black-White earnings inequality, 1968–2015. Social Science Research, 77, 30–44.
go back to reference Rohe, W. M., Zandt, S. V., & McCarthy, G. (2002). Home ownership and access to opportunity. Housing Studies, 17, 51–61. Rohe, W. M., Zandt, S. V., & McCarthy, G. (2002). Home ownership and access to opportunity. Housing Studies, 17, 51–61.
go back to reference Rosenbaum, E. (1996). Racial/ethnic differences in home ownership and housing quality, 1991. Social Problems, 43, 403–426. Rosenbaum, E. (1996). Racial/ethnic differences in home ownership and housing quality, 1991. Social Problems, 43, 403–426.
go back to reference Rosenbaum, E. (2012). Home ownership’s wild ride, 2001–2011 (US2010 Project report). New York, NY: Russell Sage Foundation; Providence, RI: American Communities Project of Brown University. Rosenbaum, E. (2012). Home ownership’s wild ride, 2001–2011 (US2010 Project report). New York, NY: Russell Sage Foundation; Providence, RI: American Communities Project of Brown University.
go back to reference Ross, S. L., & Turner, M. A. (2005). Housing discrimination in metropolitan America: Explaining changes between 1989 and 2000. Social Problems, 52, 152–180. Ross, S. L., & Turner, M. A. (2005). Housing discrimination in metropolitan America: Explaining changes between 1989 and 2000. Social Problems, 52, 152–180.
go back to reference Rothwell, J. T. (2011). Racial enclaves and density zoning: The institutionalized segregation of racial minorities in the United States. American Law and Economics Review, 13, 290–358. Rothwell, J. T. (2011). Racial enclaves and density zoning: The institutionalized segregation of racial minorities in the United States. American Law and Economics Review, 13, 290–358.
go back to reference Rugh, J. S. (2015). Double jeopardy: Why Latinos were hit hardest by the US foreclosure crisis. Social Forces, 93, 1139–1184. Rugh, J. S. (2015). Double jeopardy: Why Latinos were hit hardest by the US foreclosure crisis. Social Forces, 93, 1139–1184.
go back to reference Sampson, R. J., Morenoff, J. D., & Gannon-Rowley, T. (2002). Assessing “neighborhood effects”: Social processes and new directions in research. Annual Review of Sociology, 28, 443–478. Sampson, R. J., Morenoff, J. D., & Gannon-Rowley, T. (2002). Assessing “neighborhood effects”: Social processes and new directions in research. Annual Review of Sociology, 28, 443–478.
go back to reference Schreiner, M., & Sherraden, M. (2007). Can the poor save? Saving and asset building in individual development accounts. New Brunswick, NJ: Transaction Publishers. Schreiner, M., & Sherraden, M. (2007). Can the poor save? Saving and asset building in individual development accounts. New Brunswick, NJ: Transaction Publishers.
go back to reference Seah, K. Y., Fesselmeyer, E., & Le, K. (2017). Estimating and decomposing changes in the White–Black homeownership gap from 2005 to 2011. Urban Studies, 54, 119–136. Seah, K. Y., Fesselmeyer, E., & Le, K. (2017). Estimating and decomposing changes in the White–Black homeownership gap from 2005 to 2011. Urban Studies, 54, 119–136.
go back to reference Sharp, G., & Hall, M. (2014). Emerging forms of racial inequality in homeownership exit, 1968–2009. Social Problems, 61, 427–447. Sharp, G., & Hall, M. (2014). Emerging forms of racial inequality in homeownership exit, 1968–2009. Social Problems, 61, 427–447.
go back to reference Sherraden, M. (1991). Assets and the poor. Armonk, NY: M. E. Sharpe. Sherraden, M. (1991). Assets and the poor. Armonk, NY: M. E. Sharpe.
go back to reference Sherraden, M. (Ed.). (2005). Inclusion in the American dream: Assets, poverty, and public policy. Oxford, UK: Oxford University Press. Sherraden, M. (Ed.). (2005). Inclusion in the American dream: Assets, poverty, and public policy. Oxford, UK: Oxford University Press.
go back to reference Sherraden, M. (2014). Asset building research and policy: Pathways, progress, and potential of a social innovation. In R. Cramer & T. R. Williams Shanks (Eds.), The assets perspective: The rise of asset building and its impact on social policy (pp. 263–284). New York, NY: Palgrave MacMillan. Sherraden, M. (2014). Asset building research and policy: Pathways, progress, and potential of a social innovation. In R. Cramer & T. R. Williams Shanks (Eds.), The assets perspective: The rise of asset building and its impact on social policy (pp. 263–284). New York, NY: Palgrave MacMillan.
go back to reference Sherraden, M., Clancy, M., Nam, Y., Huang, J., Kim, Y., Beverly, S. G., . . . Purnell, J. Q. (2015). Universal accounts at birth: Building knowledge to inform policy. Journal of the Society for Social Work and Research, 6, 541–564. Sherraden, M., Clancy, M., Nam, Y., Huang, J., Kim, Y., Beverly, S. G., . . . Purnell, J. Q. (2015). Universal accounts at birth: Building knowledge to inform policy. Journal of the Society for Social Work and Research, 6, 541–564.
go back to reference Shlay, A. B. (2006). Low-income homeownership: American dream or delusion? Urban Studies, 43, 511–531. Shlay, A. B. (2006). Low-income homeownership: American dream or delusion? Urban Studies, 43, 511–531.
go back to reference Tippett, R. M., Jones-DeWeever, A., Rockeymoore, M., Hamilton, D., & Darity, W. A. (2014). Beyond broke: Why closing the racial wealth gap is a priority for national economic security (CGPS report). Washington, DC: Center for Global Policy Solutions; Durham, NC: Duke University, Social Science Research Institute. Tippett, R. M., Jones-DeWeever, A., Rockeymoore, M., Hamilton, D., & Darity, W. A. (2014). Beyond broke: Why closing the racial wealth gap is a priority for national economic security (CGPS report). Washington, DC: Center for Global Policy Solutions; Durham, NC: Duke University, Social Science Research Institute.
go back to reference Turner, T. M., & Smith, M. T. (2009). Exits from homeownership: The effects of race, ethnicity, and income. Journal of Regional Science, 49, 1–32. Turner, T. M., & Smith, M. T. (2009). Exits from homeownership: The effects of race, ethnicity, and income. Journal of Regional Science, 49, 1–32.
go back to reference Williams, D. R., & Jackson, P. B. (2005). Social sources of racial disparities in health. Health Affairs, 24, 325–334. Williams, D. R., & Jackson, P. B. (2005). Social sources of racial disparities in health. Health Affairs, 24, 325–334.
go back to reference Wilson, G., Roscigno, V. J., & Huffman, M. (2015). Racial income inequality and public sector privatization. Social Problems, 62, 163–185. Wilson, G., Roscigno, V. J., & Huffman, M. (2015). Racial income inequality and public sector privatization. Social Problems, 62, 163–185.
Metadata
Title
A Framework for Explaining Black-White Inequality in Homeownership Sustainability
Author
Chunhui Ren
Publication date
23-07-2020
Publisher
Springer US
Published in
Demography / Issue 4/2020
Print ISSN: 0070-3370
Electronic ISSN: 1533-7790
DOI
https://doi.org/10.1007/s13524-020-00894-4

Other articles of this Issue 4/2020

Demography 4/2020 Go to the issue