Vulnerability of low-income homeownership in the United States : An analysis based on household liquidity

Chunhui REN*

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

2 Citations (Scopus)

Abstract

In the United States after the Great Recession, despite growing attention to low-income households’ homeownership vulnerability, the existing works tend to take specific angles and produce only piecemeal evidence. By placing liquid assets’ function of mediating financial hardships in the context of homeownership dynamics, I establish a synthesized conceptual framework. Based on data from the Panel Study of Income Dynamics (PSID), I put this framework to a test and find that liquid assets not only reduce the risk of homeownership exit in general but play a pivotal role in accounting for low-income borrowers’ elevated rates of exit. I discuss policy implications of the findings at the end of the paper.

Original languageEnglish
JournalJournal of Urban Affairs
DOIs
Publication statusE-pub ahead of print - 25 Jul 2022
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2022 Urban Affairs Association.

Keywords

  • financial security
  • Homeownership
  • income
  • liquid assets
  • social policy

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