Promoting Wealth Building Through Homeownership

Networks Financial Institute: Working Paper Series: 2012-WP-04

33 Pages Posted: 21 Jun 2012

See all articles by Kelly D. Edmiston

Kelly D. Edmiston

Center for Insurance Policy & Research / NAIC; University of Kansas - School of Medicine; University of Missouri; Baker University

Kenneth Spong

Federal Reserve Bank of Kansas City

Date Written: June 21, 2012

Abstract

Current tax policies, while commonly thought to promote homeownership, have generally left low-income homeowners behind other homeowners. Using a number of simplifying assumptions, our estimates of lifetime homeowner tax subsidies suggest that the average homeowner in the lowest-income quintile may receive cumulative tax subsidies that are roughly one-thirteenth the size of those received by someone in the highest-income quintile. From an asset- and wealth-building perspective, the tax system thus places low-income households at a very large disadvantage – both in their quest to become homeowners and in what happens after they achieve homeownership status.

Suggested Citation

Edmiston, Kelly D. and Spong, Kenneth, Promoting Wealth Building Through Homeownership (June 21, 2012). Networks Financial Institute: Working Paper Series: 2012-WP-04, Available at SSRN: https://ssrn.com/abstract=2088897 or http://dx.doi.org/10.2139/ssrn.2088897

Kelly D. Edmiston (Contact Author)

Center for Insurance Policy & Research / NAIC ( email )

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8167838067 (Phone)

HOME PAGE: http://https://www.naic.org

University of Kansas - School of Medicine ( email )

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University of Missouri ( email )

Columbia, MO 65203
United States

Baker University ( email )

Baldwin City, KS
United States

HOME PAGE: http://https://www.bakeru.edu

Kenneth Spong

Federal Reserve Bank of Kansas City ( email )

Division of Bank Supervision and Structure
Kansas City, MO 64198
United States
816-881-2878 (Phone)

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