• Previous tenure choice studies have ignored the possible impact of job access on the tenure choice opportunity set. As a result, those studies appear to understate racial differences in the influence of family income.
• This paper estimates a nested multinomial logit of residential location and tenure choice. Our tenure choice analysis includes the attributes of a family’s residential location. The inclusion of residential location information increases the racial difference in the effect of family income, but reduces the racial difference in the effect of the constraint variable.
• The influences of both credit constraints and family income on homeownership vary by race. The availability of liquid assets for a downpayment appears to be more important for African-Americans than whites, but total family income appears to be less important for African-Americans.
• Moreover, this paper suggests some alternative explanations for the existence of these racial differences. Access to mass transit appears to be more important to renters than owners, and this effect appears to be larger for minorities.
• Overall, the results suggest that homeownership programs and new construction/rehabilitation programs have a more positive impact on property values.
1010 Affordable Housing Amazon Amenitization Architecture Artificial Intelligence Asia Australia automation Autonomous Vehicles Borrowing Constraints Brexit California Canada Capital Business China Co-Working Environment coastal markets Colombia Commercial Brokerage Commercial Real Estate commissions Congestion consumer bias covid-19 CRE credit card market Credit Default Swaps Credit Insurance Credit Risk Transfers Culture Data Analytics Data Collection Technology Debt Market Demand Demographics Density Development Discrete Choice disruption Diversity drones e-Commerce Economic Corridors economic policy economics Equity Funds Equity Market Ethnic Factors Europe Fannie Mae financial asset management Foreclosures Foreign Policy France Freddie Mac general equilibrium Global Global Financial Crisis Globalization great depression Great Recession Hedonic Housing & Residential housing boom Housing Disease housing prices Housing Supply Identity Income Inequality India Inter-generational mobility Investing jobs labor market Lagging Regions land use regulation Language Macroeconomics malls Market Pricing megacities Microeconomics Migration Minimum Payments Mixed-Use Mobility moral hazard mortgage insurance mortgage market Mortgage Rates Mortgages Multi-family Nation Building Non-Traditional Mortgages Office Market office sector Placed Based Policies Political Risk Price Discovery Private Equity Business public health Public Schools real estate brokerage Real Estate Investment Real Estate Investment Trusts Recession Rental Retail Retirement reverse mortgages Risk Adjustment risk-shifting robotics single family housing Slums Sorting South America Spatial Regions spillover effect Sub-Prime Mortgages Sustainability Technology trade transportation United States Urban Urbanization Warehouse welfare