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Measuring Homeownership Sustainability for First-Time Homebuyers

Author

Listed:
  • Kevin A. Park

    (Fannie Mae)

  • Liyi Liu

    (Freddie Mac)

  • Robert Avery

    (Federal Housing Finance Agency)

  • Lawrence Costa

    (Federal Housing Finance Agency)

Abstract

Homeownership is often expressed as a simple static number. Most reports or studies are unable to track a homeowner over time and they cannot follow a person after a home is sold to see what happens next. We craft new and dynamic statistics based on first-time homebuyers (FTHBs) using a nationally representative panel. FTHBs tend to remain homeowners through time. Additionally, we follow them through the mortgage market to describe their experiences with subsequent mortgages, including other purchase mortgages and refinances. We provide statistics about three measures of homeownership "sustainability": current homeownership, time until first exit from homeownership, and cumulative time since first purchase that individuals have remained owners. Across all three measures, we see that most homebuyers remain homeowners and the persistence has increased over time across all homeowner demographics like race or ethnicity, regions of the country, and mortgage lending submarkets.

Suggested Citation

  • Kevin A. Park & Liyi Liu & Robert Avery & Lawrence Costa, 2024. "Measuring Homeownership Sustainability for First-Time Homebuyers," FHFA Staff Working Papers 24-02, Federal Housing Finance Agency.
    • Handle: RePEc:hfa:wpaper:24-02
    as

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    File URL: https://www.fhfa.gov/research/papers/wp2402
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    References listed on IDEAS

    as
    1. Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2016. "The Vulnerability of Minority Homeowners in the Housing Boom and Bust," American Economic Journal: Economic Policy, American Economic Association, vol. 8(1), pages 1-27, February.
    2. Donghoon Lee & Joseph Tracy, 2018. "Long-term outcomes of FHA first-time homebuyers," Economic Policy Review, Federal Reserve Bank of New York, issue 24-3, pages 145-165.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    NMDB; homeownership; mortgage; first-time homebuyer;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • D10 - Microeconomics - - Household Behavior - - - General

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