 The Effect of the 2014 Federal Housing Administration Loan Limit Reductions on Homeownership DecisionsHousing Policy Debate, 2019, vol. 29, issue 2, 380-396 Abstract: Using data from the American Community Survey, this article assesses the effects of the 2014 Federal Housing Administration (FHA) loan limit reductions on homeownership decisions. Employing a difference-in-differences identification strategy, we find little evidence that the loan limit reductions caused an overall decline in homeownership rates. However, we do find that overall homeownership rates (as well as African American homeownership rates more specifically) increased in low-price parts of metropolitan statistical areas that experienced a loan limit reduction relative to high-price areas, suggesting that the lack of an overall effect may be because of changing decisions on where to own a home, not whether to own a home. This thesis is further supported by evidence of an increase in commuting times for residents in areas that experienced a limit reduction. Our findings contribute to the debate over how individuals respond and adapt their homeownership decisions to policy changes and credit constraints. Date: 2019 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:houspd:v:29:y:2019:i:2:p:380-396 Ordering information: This journal article can be ordered from DOI: 10.1080/10511482.2018.1532446 Access Statistics for this article Housing Policy Debate is currently edited by Tom Sanchez, Susanne Viscarra and Derek Hyra More articles in Housing Policy Debate from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.