Do Renters Miss the boat? Homeownership, Renting, and Wealth Accumulation

Craig Somerville (), Paulina Teller, Michael Farrell, Yosh Kasahara and Qiang Li

Chapter Chapter 12 in Household Credit Usage, 2007, pp 203-217 from Palgrave Macmillan

Abstract: Abstract The promotion of homeownership is an important policy of governments around the world. A variety of researchers have identified important social benefits that can justify public subsidies to promote homeownership.1 For individuals, homeownership plays an important role in wealth accumulation. The median U.S. household has over 50 percent of their non-pension wealth in home equity and wealth levels for owners greatly exceed those of renters at all income levels.2 However, there remains the question whether this reflects a choice in how much to save or in not owning a home, do renters miss the great wealth accumulation boat?

Keywords: House Price; Real Estate Investment Trust; Wealth Accumulation; Mortgage Rate; Home Equity (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-60891-7_12

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DOI: 10.1057/9780230608917_12

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