Disability and mortgage delinquency

Xun Bian

Housing Studies, 2021, vol. 36, issue 10, 1537-1565

Abstract: In this study, we examine the effect of disability on mortgage delinquency. Using 2007–2017 data from the Panel Study of Income Dynamics (PSID), we study the impact of disability on ex-post delinquency rate and ex-ante self-assessed delinquency risk. We find that disability substantially increases a household’s likelihood of falling behind on mortgage payments. Our point estimates suggest that on average, households with disabilities are about 41.65 percent more likely to be delinquent. This effect is highly cyclical and is much stronger during economic downturns. Households with disabilities are 56.38 percent more likely to be delinquent during the 2007–2009 U.S. housing crisis and its aftermath, and whereas the effect is rather muted during the subsequent economic recovery. Additionally, we discover that households with disabilities are generally conscious of their greater vulnerability to financial troubles. Households with disabilities are 27.28 percent more likely to report possible future delinquencies. This finding suggests that in addition to increasing ex-post delinquency rates, disability can also be psychologically burdensome for many homeowners, and this effect spreads beyond households who actually fall into delinquency.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/02673037.2020.1777945 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:chosxx:v:36:y:2021:i:10:p:1537-1565

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/chos20

DOI: 10.1080/02673037.2020.1777945

Access Statistics for this article

Housing Studies is currently edited by Chris Leishman, Moira Munro, Ray Forrest, Alex Schwartz, Hal Pawson and John Flint

More articles in Housing Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().