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RIHA: Risks in Homeownership for Low-Income Households

ARLINGTON, VA-A study has been released that calls into question the shortcomings of the system for promoting homeownership and points to the negative tax impact on low-income households. It calls for further examination of the issue.

By Amy Vaughn | Updated on June 07, 2001

ARLINGTON, VA-The Research Institute for Housing America has released a study that finds low-income households may actually face considerable risks by becoming homeowners. The study asks the government to examine its current policy and the creation of future measures to ensure homeownership benefits are promoted for low-income households, not just obtaining the home.

George McCarthy, Shannon Van Zandt and William Rohe from the Center for Urban and Regional Studies at the University of North Carolina at Chapel Hill, authors of the study, say, “There is considerable, although not irrefutable, evidence that homeownership is associated with housing and financial security… research on the impacts of homeownership also suggests that these benefits may not accrue to all homeowners.”

A spokesperson for RIHA highlights the finding that, “The federal mortgages interest deduction, widely held to benefit homeowners, often cannot be used by low-income families, the authors [of the study] point out.” The study illustrates the disparity between those in low-income households and those in higher tax brackets.

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