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Determinants of Homeownership Rates: Housing Finance and the Role of the State

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Housing Market Challenges in Europe and the United States

Abstract

The US subprime crisis of the last year led to a downturn in consumer demand and put not only the US housing finance system in severe difficulty but led also to a global financial crisis and a real economic downturn. Not only have the two major governmental agencies — Fannie Mae and Freddy Mac — counted on state bail-out, but numerous banks and industries too. Also households suffer in the current situation. RealtyTrac (2009) presented in the most recent study from February 2009 an increase in foreclosures by 6 per cent compared to January 2009 and an increase of 30 per cent compared to February 2008 (in June 2008 there was an increase of even 55 per cent year-on-year, December 2008, 41 per cent increase year-on-year).

The authors wish to thank Dieter Gstach for his valuable comments.

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Authors
  1. Elisabeth Springler
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  2. Karin Wagner
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Editor information

Editors and Affiliations

  1. Cambridge Centre for Economics and Public Policy, Department of Land Economy, University of Cambridge, UK

    Philip Arestis (University Director of Research, Distinguished Adjunct Professor of Economics, Senior Scholar, Visiting Professor) (University Director of Research, Distinguished Adjunct Professor of Economics, Senior Scholar, Visiting Professor)

  2. Department of Economics, University of Utah, USA

    Philip Arestis (University Director of Research, Distinguished Adjunct Professor of Economics, Senior Scholar, Visiting Professor) (University Director of Research, Distinguished Adjunct Professor of Economics, Senior Scholar, Visiting Professor)

  3. Levy Economics Institute, New York, USA

    Philip Arestis (University Director of Research, Distinguished Adjunct Professor of Economics, Senior Scholar, Visiting Professor) (University Director of Research, Distinguished Adjunct Professor of Economics, Senior Scholar, Visiting Professor)

  4. Leeds Business School, University of Leeds, UK

    Philip Arestis (University Director of Research, Distinguished Adjunct Professor of Economics, Senior Scholar, Visiting Professor) (University Director of Research, Distinguished Adjunct Professor of Economics, Senior Scholar, Visiting Professor)

  5. Department of Finance and Management Studies, School of Oriental and African Studies (SOAS), University of London, UK

    Philip Arestis (University Director of Research, Distinguished Adjunct Professor of Economics, Senior Scholar, Visiting Professor) (University Director of Research, Distinguished Adjunct Professor of Economics, Senior Scholar, Visiting Professor)

  6. Economic Analysis and Research, Department of the Oesterreichische Nationalbank, Vienna, Austria

    Peter Mooslechner (Director) (Director)

  7. Oesterreichische Nationalbank, Austria

    Karin Wagner (Economist) (Economist)

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© 2009 Elisabeth Springler and Karin Wagner

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Springler, E., Wagner, K. (2009). Determinants of Homeownership Rates: Housing Finance and the Role of the State. In: Arestis, P., Mooslechner, P., Wagner, K. (eds) Housing Market Challenges in Europe and the United States. Palgrave Macmillan, London. https://doi.org/10.1057/9780230246980_4

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