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Homeownership

Paper Session

Saturday, Jan. 3, 2026 8:00 AM - 10:00 AM (EST)

Loews Philadelphia Hotel
Hosted By: American Real Estate and Urban Economics Association
  • Chair: Christian Hilber, London School of Economics

When Illness Strikes Home: The Impact of Severe Health Shocks on Homeownership

Xun Bian
,
University of North Texas
Hanchen Jiang
,
University of North Texas

Abstract

We study the impact of severe health shocks, caused by first-time strokes, heart attacks, and diagnoses of cancer, on housing tenure choices in the United States. Using 2005-2019 data from the Panel Study of Income Dynamics, we estimate a value-added model that controls for pre-shock housing tenure and an extensive set of household characteristics. We find that experiencing a severe health shock significantly reduces the probability of homeownership by about 2.6 percentage points. Such an effect is robust to further controlling for pre-shock health status, disability, and healthcare expenditures. Examining heterogeneous effects, we show that our results are mainly driven by homeowners exiting homeownership after the shock. We also find that the effect of health shocks on homeownership is particularly salient among older, unmarried, and low-income families. Exploring possible mechanisms, we show that health shocks cause tightened financial constraints by raising healthcare expenditures and reducing labor supply and labor income.

Homeownership and Reinvestment: A Tale of Two Cities

Gary Painter
,
University of Cincinnati
Clemens Pilgram
,
University of Cincinnati
Saani Rawat
,
University of Cincinnati

Abstract

We examine whether reinvestment in single-family homes (SFHs) varies by housing tenure and by landlord size. Using micro-level parcel data from Minneapolis (2017–2024) and Charlotte (2004–2023), we link annual tax assessor records with publicly available building permit data to measure reinvestment. Rental properties are identified via homestead exemptions and mailing addresses, and large landlords are defined based on property-ownership thresholds. In Minneapolis, SFHs for renters file 22% less building permits and invest 33% less in permitted work than otherwise comparable owner-occupied units. In Charlotte, single-family rentals file 9% fewer permits and invest 1–2% less in dollar terms. Moreover, homes owned by large landlords in both cities file 26–56% fewer permits and invest 6–34% less than smaller landlords. Further, we find no statistical difference in plumbing permits, suggesting that landlords and large owners will forego proactive reinvestment, but not primarily reactive repair activity. Taken together, these findings suggest that the growing prevalence of rental occupancy and large-landlord ownership in the SFH market may lead to diminished reinvestment over time, thus increasing depreciation of the overall single-family housing stock.

Developer Accountability and Mortgage Access: Expanding Homeownership

Sumit Agarwal
,
National University of Singapore
Mingxuan Fan
,
National University of Singapore
Pulak Ghosh
,
Indian Institute of Management-Bangalore
Arkodipta Sarkar
,
National University of Singapore
Xiaoyu Zhang
,
Central University of Finance and Economics

Abstract

Homeownership plays a vital role in wealth creation and economic mobility, yet access remains constrained, particularly for marginalized groups. Over recent decades, real estate developers have emerged as key intermediaries in housing markets. We examine how regulatory oversight of developers affects homeownership by analyzing India's Real Estate (Regulation and Development) Act (RERA). By mandating escrow accounts, timely completion, and comprehensive disclosures, RERA creates institutional safeguards that replace the need to infer developer quality through size or reputation. We find that these regulatory guarantees increase mortgage origination, particularly among first-time borrowers and marginalized groups. While RERA's compliance requirements increase operating costs of developers leading to some exits, its transparency mandates reduce incumbent advantages and lower entry barriers. Overall, this market transformation spurs affordable housing development beyond metropolitan areas, democratizing access to homeownership.

The Perverse Effects of Rent Control: Evidence From a Large-scale Stringent Regulation in Catalonia

Michael Abel
,
ESCP Business School
Luisa Carrer
,
ESCP Business School
Jaime Luque
,
ESCP Business School

Abstract

Using a stringent large-scale policy intervention that capped rental prices in more than 60 municipalities in Catalonia, Spain, we find that rent control initially reduces average rents, but this effect vanishes after one year due to a 30%-32% decline in rental housing supply. House sales increase by 13%-18% while house prices decrease by 2.3%-3.7%. The reduction in both rental and house prices stems from effects at the bottom of the respective distributions, with no significant effects on rents at the top. Conversely, expensive houses experience significant price increases. We estimate that working-class properties lost 1 billion euros in value as a consequence of rent control, a significantly larger amount than the 8 million euros gains from reduced rents for low- and medium-income tenants. Inequality also widened because house values at the top quartile of the distribution increased by almost 1.1 billion euros.

Discussant(s)
Kwan Ok Lee
,
National University of Singapore
Edward Coulson
,
University of California-Irvine
Tracy Turner
,
Iowa State University
Hanchen Jiang
,
University of North Texas
JEL Classifications
  • R2 - Household Analysis