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):

 

  1. Higher high school graduation; [1]
  2. Provides residential stability; [2]
  3. A hedge against rising rent; [3]
  4. 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]
  5. 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 residents living in an owned home decreased over time especially for African American residents.
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, 2019)

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Key Takeaways

Overall, the percentage of people living in an owned home in Forsyth County decreased over time.

About 68% of residents lived in an owned home in 2009 compared to 62% of residents in 2019. Black residents had a significant decrease with about 50% living in an owned home in 2009 compared to 37% in 2019.

Residents with higher educational attainment were more likely to live in an owned home.

In 2019, 79% of residents with a Bachelor’s Degree lived in an owned home compared to about 61% 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 86% compared to 32% for residents with an income below $20,000.

Major racial/ethnic disparities were present.

About 75% of White residents lived in an owned home compared to 37% and 52% of Black and Hispanic/Latino residents, respectively.

Older adults were more likely to live in an owned home.

In 2019, 80% of adults 65 years and over lived in an owned home. Residents aged 18-34 were the least likely to live in an owned home at 46%.

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, 2019)

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Data Visualization

Housing Cost Burden of Renters (Forsyth County, 2019)

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Key Takeaways

About 21% of homeowners experienced a housing cost burden in 2009 compared to 15% in 2019.
Renters had higher rates of housing cost burden than homeowners.

In 2019, 15% of homeowners experienced housing cost burden compared to 40% of renters.

Residents with higher incomes had lower rates of housing cost burden.
Renters 65 years old or older were significantly more cost burdened than adults between the ages of 18 and 64.

About 57% of older adults at least 65 years old were cost burdened in 2019 compared to about 38% and 35% of adults 18 to 34 years old and adults 35 to 64 years old, respectively.