|
Home
ownership, says a study, increases the chances
of low-income kids attaining higher levels of
education, reduces idleness, cuts the
incidence of teen pregnancy, improves
earnings, and reduces the need for welfare.
"The
strongest and most consistent effect of home
ownership is on educational attainment,"
according to "Home Ownership Improves
Lifestyles for the Poor in Distressed
Neighborhoods: Does This Make Sense?" a
study conducted by the Institute for Policy
Studies at Baltimore-based John Hopkins
University.
"A
child who always lived in an owned home is
estimated to achieve nearly half a year of
school more than a child whose parents were
always renters. The likelihoods of graduating
from high school and of attending college are
both about 10 percentage points higher for
children who always lived in an owned
home," said the study supported by the
Fannie Mae Foundation.
Joseph
Harkness and Sandra J. Newman, institute
professors who authored the study, say the
reports findings have important implications
for a boot strap housing policy.
"If
home ownership in itself has a positive effect
-- even in otherwise distressed neighborhoods
-- then policies that enable poor people to
own their own homes should be
encouraged," the study says.
The
positive effects of home ownership come
somewhat from the extra equity income it
generates, but more so from the stability it
provides by reducing the number of times
families move. When it comes to more
education, fewer teen pregnancies and less
welfare, household stability is key.
"We
find that a large part of the positive impact
of home ownership on children's adult outcomes
is attributable to the greater residential
stability that it causes," the report
said.
"We
also find that neighborhood effects, while
small, are not negligible, and that children
of home owners are more likely to benefit from
good neighborhood conditions, and to be hurt
by poor ones.
The
study found:
 | Compared
to a child who never moves, a child who
moves every year achieves approximately
one year less of education, has a 25
percent lower probability of graduating
from high school and approximately a 20
percent lower chance of obtaining
post-secondary education. |
| Continuous
home ownership reduces the likelihood of
idleness (not working, attending school or
caring for children) by 5 percent. |
| Continuous
home ownership may reduce welfare
dependence by about 5 percent. |
| A
10 percent increase in the neighborhood
home ownership rate is estimated to
increase early adult annual earnings by
$679. |
| A
10 percent increase in neighborhood home
ownership rate reduces a home owner's
daughter's chance of a teen out-of-wedlock
birth by 2.5 percent. |
| A
10 percent increase in neighborhood
residential stability reduces a home
owner's daughter's chance of a teen
out-of-wedlock birth by nearly 4
percentage points. |
| The
likelihood of a teen out-of-wedlock birth
for children who move every year is about
10 percent higher than for children who
never move. |
| The
likelihood of a family going on welfare
for those who move every year is 15
percent higher than those who never move. |
The
purpose of this newsletter is to stimulate
thought for my clients and those
professionals
with whom I network. If you are a real
estate, estate planning, taxation,
financial
planning or insurance professional receiving
this newsletter, please call my
office
and introduce yourself to me. I'm always
seeking to grow my referral network
and
expose
more service professionals to my client base.
I specialize in helping
those
individuals
looking to buy, sell or refinance real
property in the Pacific Northwest
area. |
