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The ABC Data Exchange
Housing and Homeownership
Homeownership and residential stability are linked to many positive benefits like higher high school graduation rates and social/civic engagement.
Owning a home is a way to build assets and wealth, and it can be used as equity in case of unexpected expenses to prevent major disruption to well being.
Literature Review Highlights
Homeownership relates to the following positive factors (not necessarily causal):
- Higher high school graduation; [1]
- Provides residential stability; [2]
- A hedge against rising rent; [3]
- Homeownership is related to variables indicating social capital (voting, being part of local organizations, working to solve local problems, etc) and the relationship might be causal. The authors claim the causal relationship might be because homeowners are more stable; [4]
- Children exhibit fewer behavioral problems. [5]
Literature Review References
[1] Aaronson, D. (2000). A Note on the Benefits of Homeownership. Journal of Urban Economics, 47(3), 356-369.
[2] Id.
[3] Sinai, T., & Souleles, N. S. (2005). Owner-occupied housing as a hedge against rent risk. The Quarterly Journal of Economics, 120(2), 763-789.
[4] DiPasquale, D., & Glaeser, E. L. (1999). Incentives and social capital: Are homeowners better citizens?. Journal of Urban Economics, 45(2), 354-384.
[5] Haurin, D. R., Parcel, T. L., & Haurin, R. J. (2002). Impact of homeownership on child outcomes (pp. 427-446). Brookings Institution Press.
Major Findings
White residents, residents with higher educational attainment, and residents with higher household incomes were more likely to live in an owned home than their respective counterparts.
The percentage of African American residents living in an owned home jumped from 38% in 2019 to 54% in 2023.
More renters experienced housing cost burden than homeowners.
Homeownership
Homeownership typically represents those who live in homes that are owned free and clear or those who own their own home via a mortgage or loan. Owning a home, or other assets such as savings accounts, investments, and vehicles provides financial security that can protect households from unexpected expenses and decrease the likelihood of experiencing poverty [1]. While homeownership does not indicate overall wealth, or even the value of homes, they do indicate ownership of a valuable asset, which could provide financial security [1]. View data notes for this measure.
Data Visualization
Homeownership (Forsyth County, 2023)
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Key Takeaways
Homeownership has fluctuated slightly over time in Forsyth County.
The percentage of residents living in owned homes has ranged from 61% to 69% since 2009, with the current level in 2023 at 65%.
Residents with higher educational attainment were more likely to live in an owned home.
In 2023, 77% of residents with a Bachelor’s Degree lived in an owned home compared to about 60% of residents with a high school diploma or less.
Residents with higher incomes were more likely to live in an owned home.
Residents with a household income of over $100,000 had a homeownership rate of 83% compared to 32% for residents with an income below $20,000.
Major racial/ethnic disparities persisted in 2023.
About 75% of White residents lived in an owned home compared to 54% of Black residents and 52% of Hispanic/Latino residents.
Adults aged 18-34 were the least likely to live in an owned home.
In 2023, 48% of residents in this age group lived in an owned home, compared to 60% of those under 18, 73% of those aged 35-64, and 78% of those 65 and older.
Housing Cost Burden
When a significant portion of a household’s income is devoted to housing expenses, there is less money available to cover other basic needs such as food, health care, and transportation, a situation which may result in financial insecurity [1,2]. Housing cost burden measures housing expenses as a percentage of household income for homeowners and renters. The threshold for housing cost burden is when a household spends more than 30% of their income on housing expenses. Expenses include mortgage or rent payments, utilities, property taxes, insurance, and other fees. View data notes for this measure.
Data Visualization
Housing Cost Burden of Homeowners (Forsyth County, 2023)
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Data Visualization
Housing Cost Burden of Renters (Forsyth County, 2023)
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Key Takeaways
Forsyth County did not have significantly higher cost burden rates among homeowners or renters than comparison communities in 2023.
Cost-burden rates across comparison communities ranged from 15-19% for residents in owned homes and 43-48% for residents in rented homes, with Forsyth County falling within this range.
Renters had higher rates of housing cost burden than homeowners.
In 2023, 16% of Forsyth County homeowners experienced a housing cost burden compared to 48% of renters.
Residents with higher incomes had lower rates of housing cost burden.
Among Forsyth County renters, 90% of those earning $35,000 or less were cost-burdened, compared to 1% of those making over $75,000. Among homeowners, 74% of low-income residents were cost-burdened, while only 6% of high-income homeowners were.