Measuring Homeownership Sustainability for First-Time Homebuyers

Kevin Park (), Liyi Liu (), Robert Avery and Lawrence Costa
Additional contact information
Kevin Park: Fannie Mae
Liyi Liu: Freddie Mac
Robert Avery: Federal Housing Finance Agency

No 24-02, FHFA Staff Working Papers from Federal Housing Finance Agency

Abstract: Homeownership is often expressed as a simple static number. Most reports or studies are unable to track a homeowner over time and they cannot follow a person after a home is sold to see what happens next. We craft new and dynamic statistics based on first-time homebuyers (FTHBs) using a nationally representative panel. FTHBs tend to remain homeowners through time. Additionally, we follow them through the mortgage market to describe their experiences with subsequent mortgages, including other purchase mortgages and refinances. We provide statistics about three measures of homeownership \enquote{sustainability}: current homeownership, time until first exit from homeownership, and cumulative time since first purchase that individuals have remained owners. Across all three measures, we see that most homebuyers remain homeowners and the persistence has increased over time across all homeowner demographics, regions of the country, and mortgage lending submarkets.

Keywords: NMDB; homeownership; mortgage; first-time homebuyer (search for similar items in EconPapers)
JEL-codes: C80 D10 G21 R21 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2024-03
New Economics Papers: this item is included in nep-ure
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