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• W893555557 abstract "Billionaires live in big houses, but aspiring tycoons would be mistaken if they concluded from this fact that upgrading their abodes would increase their chances of obtaining great wealth. Similarly, the fact that children of homeowners are better off than children of renters does not necessarily imply that every parent should own a house.Believing that simple solutions will ease the problems of poverty and inequality is tempting, particularly when the solutions are promoted by armies of brokers, builders, and bankers who stand to profit from them. Factors influencing the well-being of children are particularly complex, however, and it is unlikely that merely switching families from renting to owning their homes would make a significant difference.Homeownership may have positive effects on children, but negative effects may also exist, making the net effect difficult to determine. For example, home equity often represents a large fraction of a family's wealth, reducing the level of diversification in their investment portfolio, making them more vulnerable to economic fluctuations. Owning a home also makes it more difficult to move quickly in response to changes in employment opportunities. Lower family income can have a negative effect on children, possibly offsetting any positive effect of homeownership.Perhaps the earliest research on the relationship between the well-being of children and home-ownership was that of Harvard historian Stephan Thernstrom. Thernstrom (1964) studied records of children in 19th-century Newburyport, Massachusetts. Thernstrom found that homeownership was associated with less upward occupational mobility for children, probably because spending more money on housing made it harder to pay for education.In contrast to Thernstrom's findings, modern data clearly show a positive correlation between child welfare and homeownership, but the question of causation is more difficult. The problem is not reverse causality, because it seems unlikely that having wonderful children causes parents to purchase houses, but that additional factors may affect the well-being of children and homeownership. Researchers must carefully control for the wide variety of factors that might simultaneously influence the well-being of children and homeownership.One of these factors is building type. Research on the relationship between the well-being of children and housing during the 1960s and 1970s was mostly about the effects of building type rather than ownership (Conway and Adams, 1977). Large post-war public housing projects prompted concerns about the effects on families of living in high-rise buildings. Several researchers found that living on the upper floors of tall buildings had detrimental effects on children. These results are important in any investigation of homeownership because of the correlation between building type and ownership- most single-family houses are owned, but most multifamily units are rented. If, as older research suggests, building type can influence child welfare, then this factor must be carefully controlled in any investigation of the effects of ownership. Recent papers finding positive effects of ownership on children do not control for building type.Mobility is another factor that is correlated with homeownership and the well-being of children. Most research on residential mobility shows that frequent moves have detrimental effects on the academic performance and the well-being of children. Because the costs of moving are higher for homeowners than for renters, families who expect to move in the near future are much more likely to live in rental housing. Although pushing families into ownership might reduce mobility, doing so might cause bigger problems, because families often move in response to loss of a job or because of crime or other problems associated with particular locations. Families might also move to place their children in better schools. …" @default.
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• W893555557 date "2013-05-01" @default.
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• W893555557 title "The Evidence Does Not Show That Homeownership Benefits Children" @default.
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