Summarizing the Research on Homeownership in Honor of National Homeownership Month

Homeownership has been receiving a lot of attention these days. (And in case you weren't aware, June is National Homeownership Month). In the wake of falling home values, foreclosures, and widespread mortgage fraud, it is quite common to hear sound bites about homeownership. And within those sound bits, there is a good deal of uncertainty regarding whether and how homeownership should be encouraged. Some suggest pushing for larger, mandatory down payments. Others contend this could exacerbate current problems in the housing market by stalling home sales while families save (upwards of 15 years!) to accumulate enough to make these larger down payments. Even some question whether homeownership should be a goal at all, citing difficulties in financing that give way to renting and more favorable household balance sheets.

Discussions such as these are healthy because they may ultimately lead to encouraging saving and providing responsible lending, and hopefully resulting in more opportunities for homeownership. Yet in the midst of these discussions and related uncertainties, there are some important points to be made regarding why supporting and encouraging homeownership – and especially the related idea of residential stability – is necessary. There is support for the relationship between affordable, stable housing (with emphasis on affordable and stable) and children’s educational and health outcomes. A pair of papers was recently released by the National Housing Conference and Center for Housing Policy summarizing these research findings. Here are a few of their key points.

According to the research summary on educational outcomes, access to affordable and stable housing means:

• Reduced instances of homelessness along with reduced barriers to children’s education;
• Decreased residential mobility and fewer disruptions in children’s education, like changing schools; and,
• Improved opportunities for leveraging educational and community resources, such as after-school programs.

Similar conclusions can be drawn from their research summary on health outcomes. Here, access to affordable and stable housing means:

• Less restricted family budget with more freedom to allocate money towards nutritious food and health care costs;
• Improved residential stability and reduced stress; and,
• Reduced crowding and, related to this, reduced exposure to health concerns like infectious diseases.

What’s the take-home message? Homeownership – especially when it is affordable and stable – is important to children’s education and health. Questions about how homeownership should be encouraged are still up for discussion. However, the discussions are worth it if they lead to better outcomes for children.