Racial and Ethnic Differences in the Financial Returns to Home Purchases

Matthew Kahn

No 28759, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The racial and ethnic composition of home buyers varies across geographic locations. Since home prices grow at different rates across counties and within counties, these place based bets yield different average rates of return for different demographic groups. I estimate these differential returns by combining micro data from HMDA with zip code level data from Zillow. Based on this index of housing returns from 2010 to 2022, I find that at the national level that Asian buyers earn higher returns than other groups. For California buyers and for Los Angeles buyers, Black people earn roughly the same average rate of return but face a higher standard deviation in returns than other groups.

JEL-codes: R21 R3 R31 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-geo and nep-ure
Note: EEE PE
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Citations: View citations in EconPapers (6)

Published as Matthew E. Kahn, 2024. "Racial and ethnic differences in the financial returns to home purchases," Real Estate Economics, vol 52(3), pages 908-927.

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Journal Article: Racial and ethnic differences in the financial returns to home purchases (2024)
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