The Impact of Macroeconomic Fluctuations on the Likelihood of African American Female Homeownership

Homeownership, a primary component of household wealth, confers benefits not just in terms of the value of home equity itself, but also the tax benefits and inflation protection associated with owning property. The 1990s represented a booming time in the economy and record low interest rates which a...

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Bibliographic Details
Published in:The Review of Black political economy 2012, Vol.39 (3), p.299-309
Main Authors: Conrad, Daren A., Brown, LaTanya N.
Format: Article
Language:English
Subjects:
African Americans
Black White Differences
Black women
Business Cycles
Cultural differences
Debt
Economic fluctuations
Economic Policy
Economics
Economics and Finance
Equity
Females
Foreclosure
Home ownership
Homeowners
Households
Housing
Housing Market
Human capital
Inflation
Interest Rate
Interest rates
Loans
Macroeconomics
Minority & ethnic groups
Mortgages
Neighborhoods
Political economy
Political Science
Polls & surveys
Predatory lending
Probability
Property
Race
Racial differences
Redlining
Regression analysis
Social capital
Social policy
Sociology
Spatial Analysis
Taxation
U.S.A
Values
Wealth
White people
Women
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Summary:Homeownership, a primary component of household wealth, confers benefits not just in terms of the value of home equity itself, but also the tax benefits and inflation protection associated with owning property. The 1990s represented a booming time in the economy and record low interest rates which allowed homeownership to become more available to more people than ever. As a result, the US housing market experienced significant growth and home values began to soar in part due to rising incomes. However, this period of rapid expansion in the housing market was followed by a rapid decline, precipitated by the recession, as home values began to plummet and foreclosures steadily increased. This study examines the impact that recent macroeconomic fluctuations had on the likelihood of homeownership for African American women compared to their white counterparts. Using data from the American Housing Survey (1997–2009), this tenure spatial analysis used a logistic regression model to examine the odds in favor of homeownership during economic fluctuations along with taking into consideration other important determinants. The empirical results show that there are significant differences in the likelihood of homeownership between African American women and white females.
ISSN:0034-6446
1936-4814
DOI:10.1007/s12114-011-9113-3