The Growth of Earnings of Low-Income Households and the Sensitivity of Their Homeownership Choices to Economic and Socio-Demographic Shocks

This April 2005 report traces post-purchase experiences of low-income homeowners. It investigates the growth rate of earnings of low-income households following their first purchase of a house. The study analyzes the correlates of this income growth and identifies which low-income households are most likely to succeed in homeownership. The study also investigates unsuccessful spells of first-time homeownership by low-income households and tests for correlates between termination of homeownership and financial or social shocks in first-time, low-income homeowners' lives. Finally, the results are discussed and analyzed for their public policy implications.