Volume 17, Issue 4

2006

 

 

Haurin and Morrow-Jones analyze a sample of survey respondents from
Columbus, OH, and find that additional knowledge about real estate markets
increases the likelihood of homeownership. They conclude that differences in
real estate knowledge contribute importantly to explaining some of the racial
gap in homeownership rates; this finding leads to their conclusion that the
racial gap can be addressed through public policy interventions, including
financial counseling programs.

Their research broadly addresses three questions: Why does the racial gap
in homeownership exist? Why does it persist? What can be done to reduce it?
We compare their findings with those of other researchers and conclude that
improved financial literacy may well be an important tool for reducing the gap,
but that the causes for its existence and persistence are complex and that
improving financial literacy alone may not be sufficient to have a significant
and lasting impact.