Acolin, Arthur; Goodman, Laurie; Wachter, Susan M. (2019). Accessing Homeownership with Credit Constraints. Housing Policy Debate, 29(1), 108 – 125.
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Abstract
The tightening of mortgage credit in the aftermath of the global financial crisis has been identified as a factor in the decline of homeownership in the United States to 50-year lows. In this article, we review findings about the role of borrowing constraints and tightened credit in lowering access to homeownership. We also discuss how institutional changes could hinder or support this access going forward.
Keywords
Borrowing Constraints; Home Ownership; Mortgage; Model; Race; Homeownership; Credit Access; International Finance; Economic Crisis; Property; Aftermath; Access; Credit; Access To Credit; Economic Models; United States--us
Acolin, Arthur; Ramiller, Alex; Walter, Rebecca J; Thompson, Samantha; Wang, Ruoniu. (2021). Transitioning to Homeownership: Asset Building for Low- and Moderate-Income Households. Housing Policy Debate, 31(6), 1032 – 1049.
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Abstract
This article assesses the asset building of households that take part in shared-equity homeownership (SEH) models. The contribution of this article is a comparison of outcomes for households participating in shared-equity programs with other low- and moderate-income households who rent or own properties without restrictions on appreciation. We matched participants in SEH programs to households with similar characteristics from the Panel Study of Income Dynamics (PSID) over the 1997-2017 period. The findings indicate that in real terms, median SEH homeowners accumulated about $1,700 in housing wealth annually or around $10,000 during their holding period. This amount is lower than the $2,100 median annual gain in home equity experienced by similar PSID owners but statistically and economically significantly larger than the $16 in annual gain experienced by similar PSID renters. The findings provide evidence that households participating in SEH programs experienced positive, but modest, wealth gains that were slightly lower than those of homeowners in unrestricted units but substantially higher than those of renters.
Keywords
Appreciation; Households; Property; Wealth; Income; Housing; Dynamic Tests; Home Ownership; Assets; Tenants; Equity; Owners
Acolin, Arthur; Hoek-Smit, Marja C.; Eloy, Claudia Magalhaes. (2019). High Delinquency Rates in Brazil’s Minha Casa Minha Vida Housing Program: Possible Causes and Necessary Reforms. Habitat International, 83, 99 – 110.
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Abstract
Brazil's main housing program, Minha Casa Minha Vida (MCMV), has contracted the construction of over 3 million housing units since 2009, providing access to homeownership for low and middle-income households through a combination of credit, subsidies and guarantees. In this paper, we analyze disaggregated delinquency information at the project level for the section of the program that serves households in the lowest income range (Faixa 1). Our analysis of program performance in six metropolitan regions shows an overall level of delinquency of 28% as of the end of 2015. We identify four hypotheses to explain this elevated level of delinquency: the peripheral location of the units, insufficient income to cover ongoing costs, moral hazard in the management of the program, and organized crime in some projects. Our analysis shows that in 4 of the 6 regions, low-income projects in peripheral locations exhibit substantially higher non-payment levels and that lower income households have higher levels of delinquency. Based on our analysis, we recommend modifications to program design, including the inclusion of location criteria in subsidy scaling. The findings provide evidence of the limits of MCMV Faixa l's approach to solving Brazilian low-income housing needs and contribute to an emerging body of literature pointing to the importance of location in housing programs.
Keywords
Income; Urban Growth; Housing; Home Ownership; Moral Hazard; Affordable Housing; Delinquency Rate; Housing Program; Integrated Urban Development; Programa Minha Casa Minha Vida; Social Housing; Mexico; Scale
Colburn, Gregg. (2021). The Use of Markets in Housing Policy: A Comparative Analysis of Housing Subsidy Programs. Housing Studies, 36(1), 46 – 79.
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Abstract
Many countries use demand-side housing subsidies to support low-income households. Unlike public or social housing programs, demand-side subsidies require recipients to enter the private market to use their benefits. The focus of this study is the experiences of assisted households in the private housing market and the outcomes they achieve. Given the link between policy design and program outcomes and because all housing subsidy programs are not created equal, one might expect the experiences and outcomes of recipients to also vary. To examine this relationship, using data from national housing surveys, this study analyzes cross-national variation in housing support programs and compares the housing and neighbourhood outcomes of subsidized households in the US, the UK, and the Netherlands. The findings of this study highlight that market context and policy design are associated with housing outcomes. In particular, the strong tenant supports and favourable design of housing assistance in the Netherlands is associated with favourable outcomes for subsidized households. In the US and the UK, subsidized households, in general, underperform their unsubsidized peers. This article underscores the importance of institutional context and program design when public assistance programs require recipients to enter the private market to use a benefit.
Keywords
Housing; Housing Subsidies; Comparative Studies; United States; Great Britain; Netherlands; Comparative; Outcomes; Subsidized Housing; Subsidy; Choice Vouchers; Poverty Deconcentration; United-states; Tax Credit; Income; Neighborhoods; Opportunity; Future; Britain; Comparative Analysis; Subsidies; Households; Context; Housing Policy; Design; Subsidies (financial); Housing Market; Low Income Groups; Public Housing; Assistance Programmes; United Kingdom--uk; United States--us
Acolin, Arthur; Lin, Desen; Wachter, Susan M. (2019). Endowments and Minority Homeownership. Cityscape, 21(1), 5 – 62.
Abstract
Fifty years after the adoption of the 1968 Fair Housing Act that prohibits discrimination in the housing market, homeownership rates have not increased for Black or Hispanic households. The current homeownership rate for Black households is 42 percent, identical to the 1970 census reported level, and 48 percent for Hispanic households, lower than that in 1970. Using data from the 1989, 2005, and 2013 American Housing Surveys, we identify the extent to which group differences in household endowments account for persistently low minority homeownership levels.
Keywords
Borrowing Constraints; Household Formation; Race; Wealth; Trends; Rates
Costa, Ana; Sass, Victoria; Kennedy, Ian; Roy, Roshni; Walter, Rebecca J.; Acolin, Arthur; Crowder, Kyle; Hess, Chris; Ramiller, Alex; Chasins, Sarah. (2021). Toward a Cross-Platform Framework: Assessing the Comprehensiveness of Online Rental Listings. Cityscape, 23(2), 327 – 339.
Abstract
Research on rental housing markets in the United States has traditionally relied on national or local housing surveys. Those sources lack temporal and spatial specificity, limiting their use for tracking short-term changes in local markets. As rental housing ads have transitioned to digital spaces, a growing body of literature has utilized web scraping to analyze listing practices and variations in rental market dynamics. Those studies have primarily relied on one platform, Craigslist, as a source of data. Despite Craigslist's popularity, the authors contend that rental listings from various websites, rather than from individual ones, provide a more comprehensive picture. Using a mixed-methods approach to study listings across various platforms in five metropolitan areas, this article demonstrates considerable variation in both the types of rental units advertised and the features provided across those platforms. The article begins with an account of the birth and consolidation of online rental platforms and emergent characteristics of several selected websites, including the criteria for posting, search parameters, search results priority, and first-page search results. Visualizations are used to compare features such as the 40th percentile of rent, rent distribution, and bedroom size based on scraped data from six online platforms (Padmapper, Forrent.com , Trulia, Zillow, Craigslist, and GoSection8), 2020 Fair Market Rents, and 2019 American Community Survey data. The analyses indicate that online listing platforms target different audiences and offer distinct information on units within those market segments, resulting in markedly different estimates of local rental costs and unit size distribution depending on the platform.
Ametefe, Frank Kwakutse; Devaney, Steven; Stevenson, Simon Andrew. (2019). Optimal Composition of Hybrid/Blended Real Estate Portfolios. Journal Of Property Investment & Finance, 37(1), 20 – 41.
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Abstract
Purpose The purpose of this paper is to establish an optimum mix of liquid, publicly traded assets that may be added to a real estate portfolio, such as those held by open-ended funds, to provide the liquidity required by institutional investors, such as UK defined contribution pension funds. This is with the objective of securing liquidity while not unduly compromising the risk-return characteristics of the underlying asset class. This paper considers the best mix of liquid assets at different thresholds for a liquid asset allocation, with the performance then evaluated against that of a direct real estate benchmark index. Design/methodology/approach The authors employ a mean-tracking error optimisation approach in determining the optimal combination of liquid assets that can be added to a real estate fund portfolio. The returns of the optimised portfolios are compared to the returns for portfolios that employ the use of either cash or listed real estate alone as a liquidity buffer. Multivariate generalised autoregressive models are used along with rolling correlations and tracking errors to gauge the effectiveness of the various portfolios in tracking the performance of the benchmark index. Findings The results indicate that applying formal optimisation techniques leads to a considerable improvement in the ability of the returns from blended real estate portfolios to track the underlying real estate market. This is the case at a number of different thresholds for the liquid asset allocation and in cases where a minimum return requirement is imposed.
Keywords
Hedge-fund-replication; Volatility Dynamics; Tracking Error; Stock; Performance; Property; Returns; Markets; Private; Model; Open-ended Funds; Real Estate Liquidity; Portfolio Optimization; Blended Real Estate; Defined Contribution Pensions
Hess, Chris; Acolin, Arthur; Walter, Rebecca; Kennedy, Ian; Chasins, Sarah; Crowder, Kyle. (2021). Searching for Housing in the Digital Age: Neighborhood Representation on Internet Rental Housing Platforms across Space, Platform, and Metropolitan Segregation. Environment And Planning A-economy And Space, 53(8), 2012 – 2032.
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Abstract
Understanding residential mobility, housing affordability, and the geography of neighborhood advantage and disadvantage relies on robust information about housing search processes and housing markets. Existing data about housing markets, especially rental markets, suffer from accuracy issues and a lack of temporal and geographic flexibility. Data collected from online rental platforms that are commonly used can help address these issues and hold considerable promise for better understanding the full distribution of available rental homes. However, realizing this promise requires a careful assessment of potential sources of bias as online rental listing platforms may perpetuate inequalities similar to those found in physical spaces. This paper approaches the production of rental advertisements as a social process driven by both contextual and property level factors. We compare data from two online platforms for the 100 most populated metropolitan areas in the United States to explore inequality in digital rental listing spaces and understand what characteristics are associated with over and underrepresentation of advertisements in certain areas. We find similar associations for socioeconomic measures between platforms and across urban and suburban parts of these metropolitan areas. In contrast, the importance of racial and ethnic composition, as well as broader patterns of segregation, for online representation differs substantially across space and platform. This analysis informs our understanding of how online platforms affect housing search dynamics through their biases and segmentation, and highlights the potential and limits in using the data available on these platforms to produce small area rental estimates.
Keywords
Fair Market Rents; Cities; Opportunity; Residential Mobility; Online Rental Listings; Rental Housing Markets; Housing Search; Inequality
Ascherl, Claudia; Schrand, Liesa; Schaefers, Wolfgang; Dermisi, Sofia. (2019). The Determinants of Executive Compensation in US REITs: Performance vs. Corporate Governance Factors. Journal Of Property Research, 36(4), 313 – 342.
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Abstract
The paper examines whether executive compensation packages within the US REIT industry are determined merely by performance or also by CEO power mechanisms that have an essential influence on board-level negotiations. We offer original insights into management compensation arrangements during and after the financial crisis. The relative importance of cash bonuses in CEO compensation contracts has more than halved after the crisis. Simultaneously, after the financial crisis, equity-based compensation became increasingly important. Concerning the pay-for-performance link, our results show no relationship during the financial crisis. However, after the crisis, we find a strong significant link between remuneration packages and corporate success.
Keywords
Executive Compensation; Chief Executive Officers; Negotiations; Compensation; Packages; Crises; Economic Crisis; Corporate Governance; United States--us
Tillyer, Marie Skubak; Wilcox, Pamela; Walter, Rebecca J. (2021). Crime Generators In Context: Examining ‘place In Neighborhood’ Propositions. Journal Of Quantitative Criminology, 37(2), 517 – 546.
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Abstract
Objectives The present study tests hypotheses regarding the moderating influence of neighborhood-level criminal opportunity on the relationship between crime generators and block-level crime. Methods We first estimated multilevel negative binomial regression models for violent, property, and drug crimes to identify crime-type specific crime generators on each block. We then estimated a series of crime-type specific models to examine whether the effects of violent, property, and drug crime generators are moderated by three census block group-level indicators of neighborhood criminal opportunity-concentrated disadvantage, vehicular traffic activity, and civic engagement. Results The positive relationship between crime generators and crime on blocks was exacerbated in census block groups with high levels of concentrated disadvantage and high levels of traffic activity for all three crime types. The effects of crime generators on block-level crime were significantly tempered in census block groups with high levels of civic engagement. Conclusions Particular place types do not generate crime similarly across varying neighborhood contexts. Rather, the criminogenic effects of micro-places appear to be exacerbated in neighborhoods with extensive criminal opportunity and tempered in neighborhoods with less criminal opportunity.
Keywords
Neighborhoods; Crime; Regression Analysis; Census; Crime And Place; Crime Generators; Multilevel Opportunity; Place In Neighborhood; Alcohol Outlet Density; Block-level Analysis; Social-disorganization; Routine Activities; Longitudinal Analysis; Street Robbery; Land-use; Multilevel; Victimization; Community; Citizen Participation; Traffic; Property Offences; Drugs; Effects; Property