MBA: Homeownership Rate Tied to Economy

The improved economic and financial status of American households accounted for nearly all the growth in the homeownership rate during the 1990s, according to the Mortgage Bankers Association of America.The announcement was based on a study by the Research Institute for Housing America, an independent trust fund of the MBA. "The results of the study highlight the key role that a strong and growing economy plays for raising the homeownership rates, especially for minority households," said Doug Duncan, the MBA's chief economist and senior vice president for research and business development. The study also found that the homeownership gap between white and both Hispanic and black homeownership rates in 2001 did not decline substantially from the levels recorded in 1989, according to RIHA. The study, "Causes of the Increase in Homeownership in the 1990s: A Retrospective View," was conducted by Professors Stuart Rosenthal of Syracuse University and Stuart Gabriel of the University of Southern California's Lusk Center for Real Estate. The MBA can be found online at http://www.mbaa.org.