The vulnerability of minority homeowners in the housing boom and bust
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This paper examines mortgage outcomes for a large sample of individual home purchases and refinances linked to credit scores in seven major US markets. Among those with similar credit scores and loan attributes, black and Hispanic homeowners had much higher rates of delinquency and default in the downturn. These estimated differences are especially pronounced for loans originated near the peak of the housing boom. These findings suggest that black and Hispanic homeowners drawn into the market near the peak were especially vulnerable to adverse economic shocks and raise concerns about homeownership as a mechanism for reducing racial disparities in wealth.
Published Version (Please cite this version)10.1257/pol.20140074
Publication InfoBayer, Patrick; Ferreira, F; & Ross, Stephen L (2016). The vulnerability of minority homeowners in the housing boom and bust. American Economic Journal: Economic Policy, 8(1). pp. 1-27. 10.1257/pol.20140074. Retrieved from https://hdl.handle.net/10161/13116.
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Gilhuly Family Professor in Economics
Bayer's research focuses on wide range of subjects including racial inequality and segregation, social interactions, housing markets, education, and crime. He has received numerous grants from the National Science Foundation, Social Science and Humanities Council of Canada, and the US Department of Education. His most recent work has been published in the Quarterly Journal of Economics, the Journal of Political Economy, the Journal of Environmental Economics, and American Economics Association