IDEAS home Printed from https://ideas.repec.org/a/taf/rsrexx/v2y2010i1p117-141.html
   My bibliography  Save this article

Location Efficiency and Mortgage Default

Author

Listed:
  • Stephanie Rauterkus
  • Grant Thrall
  • Eric Hangen

Abstract

Using a sample of over 40,000 mortgages in Chicago, Jacksonville, and San Francisco, we model the probability of mortgage default based on differences in location efficiency. We used two proxy variables for location efficiency: 1) vehicles per household scaled by income and 2) Walk Score™. We find that default probability increases with the number of vehicles owned after controlling for income. Further, we find that default probability decreases with higher Walk Scores in high income areas but increases with higher Walk Scores in low income areas. These results suggest that some degree of greater mortgage underwriting flexibility could be provided to assist households with the purchase of location efficient homes, without increasing mortgage default. They also support the notion that government policies around land use, zoning, infrastructure, and transportation could have significant impacts on mortgage default rates.

Suggested Citation

  • Stephanie Rauterkus & Grant Thrall & Eric Hangen, 2010. "Location Efficiency and Mortgage Default," Journal of Sustainable Real Estate, Taylor & Francis Journals, vol. 2(1), pages 117-141, January.
    • Handle: RePEc:taf:rsrexx:v:2:y:2010:i:1:p:117-141
    DOI: 10.1080/10835547.2010.12091811
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2010.12091811
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2010.12091811?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rsrexx:v:2:y:2010:i:1:p:117-141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rsre20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.