Mark R. Lindblad

FRIENDS AND NEIGHBORS: HOMEOWNERSHIP AND SOCIAL CAPITAL AMONG LOW‐ TO MODERATE‐INCOME FAMILIES

ABSTRACT: This research explores whether homeownership leads to increased individual social capital among low- to moderate-income families. Social capital refers to social resources a person can access through contacts with others in his or her social networks. We theorize that homeownership can motivate interactions with others in one’s neighborhood and therefore build social capital. Using a sample of low- and moderate-income homeowners and a matched sample of renters, we collect data on overall social resources and neighborhood-specific social resources. We find that homeowners have more total social capital resources and more neighborhood social capital resources than renters. Neighborhood group involvement has an indirect effect on social capital, but explains only a small amount of the influence of homeownership. These findings hold when controlling for household-level and neighborhood-level sociodemographic variables, as well as when using statistical models that account for endogeneity. Based on this evidence, we conclude that homeownership gives people access to social capital via increased social ties to others. We discuss the implications of this finding for housing policy and suggest new directions for research on social capital.

Sense of Community and Informal Social Control Among Lower Income Households: The Role of Homeownership and Collective Efficacy in Reducing Subjective Neighborhood Crime and Disorder

We examine the link between homeownership, collective efficacy, and subjective neighborhood crime and disorder. Although prior research suggests that homeownership provides social benefits, the housing downturn and foreclosure crisis, coupled with mounting evidence that people self-select into housing, raise questions about the role of homeownership. We adjust for respondents’ decision to own or rent using a nationwide sample of lower-income households. We account for demographic and neighborhood characteristics as well as ratings of individual efficacy. We present a structural equation model that identifies how sense of community and informal social control jointly contribute to collective efficacy. The latent collective efficacy construct mediates the impact of homeownership on resident’s perceptions of neighborhood disorder. Such perceptions matter because they have been linked to resident’s physical and mental health. Our findings demonstrate that when coupled with sustainable mortgages, homeownership exerts a robust yet indirect effect in reducing subjective neighborhood crime and disorder. Our model also links collective efficacy to neighborhood racial homogeneity, a finding which presents challenges for the study of diversity and community. We discuss sense of community research as well as sustainable mortgages and implications of the foreclosure crisis for the future of homeownership opportunities among lower income households and neighborhoods.

Performance Measurement in Local Economic Development

Despite the trend toward accountability in the public sector, little inferential research exists on the use of accountability tools such as performance measurement. This study identifies factors that affect performance measurement in local economic development and compares the impact of structural determinants such as demographic, socioeconomic, and competitive factors to local community choices such as organizational, political, and community forces. Organizational characteristics of the economic development agency had the greatest impact, though socioeconomic and competitive forces also affected performance measurement. Overall, the findings indicate that in municipal policy making, both structural constraints and local choices matter, but local choices matter more.

Homeownership and Local Voting in Disadvantaged Urban Neighborhoods

Homeownership has long been considered the cornerstone of the American dream, and considerable research has pointed to the social benefits of homeownership for both families and communities. Yet research concerning this link between homeownership and social participation has recently undergone critique for failing to consider neighborhood context. Do homeowners in disadvantaged urban neighborhoods become active participants in neighborhood improvement, or do they feel stuck in undesirable neighborhoods where they perceive little potential for change? The research addresses endogeneity concerns and shows that, when compared to renters, homeowners are more likely to have voted in recent local elections. Neighborhood context does moderate these relationships, with homeowners in disadvantaged neighborhoods being more likely to vote than owners in other areas. These findings suggest that, despite potential household-level costs associated with owning a home in a disadvantaged urban area, responsible homeownership in such areas promotes local political involvement among lower-income residents.

Homeownership and Civic Engagement in Low-Income Urban Neighborhoods: A Longitudinal Analysis

This paper tests whether there is a causal relationship between homeownership and two forms of civic engagement. We explore three theoretical linkages between homeownership and civic engagement: financial self-interest, the dwelling as a bundle of interests, and residential mobility. Using a sample of lower-income homeowners and a matched sample of renters, we analyze data on neighborhood group membership, social activity, homeownership status, and mobility over a 4-year period. Findings indicate that renters who became homeowners during the study period were no more involved in neighborhood organizations prior to homeownership than renters who did not become homeowners. However, involvement increased significantly after these renters became homeowners. We discuss the implications of this finding for policies aimed at promoting homeownership in lower-wealth urban neighborhoods.

The Effects of Differential Interviewer Incentives on a Field Data Collection Effort

Surveys routinely offer incentives to motivate respondents and increase the likelihood of their participation, yet surprisingly little is known about the effectiveness of interviewer incentives. If interviewer incentives increase interviewers’ success in gaining cooperation, they could help address declining survey response rates. In this article, we present the results of an experiment testing the effectiveness of interviewer incentives in the form of cash bonuses for each successfully completed field interview. We did not find evidence that higher payments to interviewers for each completion led to increased effort on the part of interviewers nor did they lead to higher levels of success in securing respondent cooperation. These findings suggest that per complete interviewer incentives may not be cost effective in reducing survey nonresponse.

Why Is Homeownership Associated With Nonfinancial Benefits? A Path Analysis of Competing Mechanisms

Four mechanisms may underlie a homeownership effect: residential stability, perceived control, social identity, and financial interest. Path analysis of survey data collected from lower-income households suggests that the length of time lived in the dwelling and the participants sense of control mediate the association of homeownership with civic engagement and health outcomes. The magnitude of this homeownership effect depends upon higher levels of home equity and increases after controlling for single-family detached housing. While much of the homeownership effect remains unexplained, the findings suggest that the nonfinancial benefits of owning a home are influenced by home equity and dwelling type yet are driven by residential stability and perceived control. These mechanisms could be leveraged to benefit renters.

First-time homebuying: attitudes and behaviors of low-income renters through the financial crisis

Abstract We use psychological theory to investigate how attitudes toward homebuying relate to first-time home purchases over the past decade. Homeownership rates in the US have dropped to 20-year lows, but whether views toward homebuying shifted due to the financial crisis is not known because studies have not compared attitudes for the same respondents pre- and post-crisis. We address this gap with 2004–2014 panel data from low-income renters. We find that a negative shift in homebuying attitudes is associated with a decline in first-time home purchases. Older renters aged more than 35 years at baseline report the greatest declines in homebuying intentions. Younger renters aged 18–34 also report diminished homebuying intentions, yet express highest overall levels of homebuying intentions pre- and post-crisis. Blacks report greater homebuying intentions although their odds of home purchase are 29 per cent lower than whites. Homebuying norms and favorability are associated with homebuying intentions but not with actual purchases, while perceived control over homebuying influences both outcomes.

Financial Record Checking in Surveys Do Prompts Improve Data Quality

Self-reports of financial information in surveys, such as wealth, income, and assets, are particularly prone to inaccuracy. We sought to improve the quality of financial information captured in a survey conducted by phone and in person by encouraging respondents to check records when reporting on income and assets. We investigated whether suggestive prompts influenced unit response, compliance with the request to check records, precision of estimates, and accuracy. We conducted a split sample experiment in the Community Advantage Panel Survey in which half of telephone respondents and half of in-person household interview respondents were encouraged to check the records. We found a modest positive effect of prompts on compliance but no effect on unit response, precision, or accuracy.

Coping with Adversity: Personal Bankruptcy Decisions of Lower-Income Homeowners Before and After Bankruptcy Reform

We examine the personal bankruptcy decisions of lower-income homeowners before and after the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Econometric studies suggest that personal bankruptcy is explained by financial gain rather than adverse events, but data constraints have hindered tests of the adverse events hypothesis. Using household level panel data and controlling for the financial benefit of filing, we find that stressors related to cash flow, unexpected expenses, unemployment, health insurance coverage, medical bills, and mortgage delinquencies predict bankruptcy filings a year later. At the federal level, the 2005 Bankruptcy Reform explains a decrease in filings over time in counties that experienced lower filing rates.