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Research Seminars & Workshops @ IRES


Dr Seah Kiat Ying
School of Business, Singapore Management University

How Did the Housing Bust Affect the White-Black Homeownership Gap


Date:

14 November 2013 (Thurs)

Time:

4:00 - 5.30pm

Venue:

RMI Executive Seminar Room, Level 4, I-Cube Building


Abstract

This study documents the changes in the distribution of the white-black homeownership gap over the housing bust period of 2005 through 2011. Our analysis shows that the housing bust did not affect the homeownership gap uniformly. In fact, we find that the gap decreased for households that were the least likely to own and remained unchanged for households that were most likely to own, and that medium likely to own black households were especially vulnerable to the crisis. Contrary to the popular press's focus on the role of predatory lending among minority households, we find that the contribution of racial differences to the residual gap (which potentially captures any discriminatory practices) was modest. Overall, the changes in the total racial gap over the sample period are substantively explained by changes in wage income, interest dividend and rental income, marital status, and length of residence, with the extent of their respective influences varying over the homeownership distribution. Our empirical approach reveals distributional information on the determinants of the changes in the homeownership gap at the household level. Such insights have valuable policy implications that would otherwise be concealed in analyses that look only at the conditional mean.

About the Speaker

Dr Seah, is an Assistant Professor at the NUS Department of Real Estate with an expertise in real estate finance.  Kiat Ying’s research examines institutional investment in real estate and studies the effects of data ambiguity and judgment bias on prices and liquidity.  She teaches courses in urban economics and real estate investment.

Dr. Seah received her doctorate from University of Wisconsin-Madison and her bachelor degree from National University of Singapore.  Prior to joining the school, she was an officer at the Jurong Town Corporation (now JTC Corporation), has served as Secretary of the accreditation committee of the Singapore Institute of Surveyors and Valuers, was a student associate at the Office of the Chief Economist of Freddie Mac and a visiting lecturer at the Economics Department of the University of Virginia.

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