Date: Wednesday March 13 at 11:00 AM Eastern Time

Speaker: Adam Soliman (LSE)

Paper Title: The Erosion of Homeownership and Minority Wealth: The Role of Institutional Investors.

Abstract: Since the Great Recession, the traditional path to wealth creation through home own- ership has stalled and worsened for many minority households. One potential and largely unexplored driver of this trend is the growing presence of institutional investors, who often purchase single-family homes and convert them to permanent rentals. We find that large institutional investors alone have decreased homeownership rates in black neighborhoods in high growth southern cities like Charlotte, North Carolina by 4%. Using a granular spatial difference-in-differences estimator, we show that an institutional investor purchase leads to a 2% decline in neighboring property values. This effect is almost exclusively limited to majority black suburban neighborhoods. These property value declines are also associated with commonly hypothesized social spillovers from the loss of homeownership, namely increases in crime and decreases in property maintenance and political participation.

Registration Link: https://us06web.zoom.us/webinar/register/WN_8e3DKNceSMu46M9AhhQHjg