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Rates of Return on Housing of Low‐and Moderate‐Income Owners
Author(s) -
Pollakowski Henry O.,
Stegman Michael A.,
Rohe William
Publication year - 1991
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00560
Subject(s) - economics , investment (military) , value (mathematics) , labour economics , affordable housing , rate of return , capital (architecture) , demographic economics , low income , finance , economic growth , archaeology , machine learning , politics , political science , computer science , law , history
While long‐term returns to capital invested in owner‐occupied housing have been competitive with other investment alternatives, no evidence exists on the market performance of the owner‐occupied housing in which low‐ and moderate‐income households would be most likely to invest. This article thus attempts to answer the question of whether the “affordable housing units” that are relevant to policy discussions concerning low‐ and moderate‐income homeownership have experienced different rates of price appreciation than have higher valued dwellings. The national file of the American Housing Survey is used to estimate appreciation rates by value class in representative U.S. housing markets. We find that for the period 1974 through 1983 appreciation rates for lower valued housing were generally about equal to those for higher valued housing.