Mastering the metropolis through research and thought leadership.
Working Papers

Homeownership and the Use of Nontraditional and Subprime Mortgages

Working paper #792
Arthur Acolin, Raphael W. Bostic, Xudong An and Susan M. Wachter

This paper examines the association between nontraditional (NTM) and subprime mortgages and the change in the number of homeowners and the change in the homeownership rate at the county level between 2000 and 2012. We find no relationship between changes in the homeownership rate and NTM and subprime mortgage lending. We find significant relationships between changes in the number of homeowners (positive during the 2000-2006 period and negative during the 2006-2012 period) and NTM and subprime mortgage lending at the county level. For subgroups, including young, minority and low income households, we find either no relationship or smaller relationships than for the overall population for NTMs and for subprime lending. The overall relationship between NTMs and the change in the number of homeowners at the county level is stronger than the relationship for subprime mortgages during the boom and it is less negative during the bust.

Download full paper · 2MB PDF


In This Section
Explore Topics

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

arrow_drop_up