A Framework for Explaining Black–White Inequality in Homeownership Sustainability

Why do housing outcomes differ by race? To understand Black–White disparities in homeownership sustainability, this study proposes a conceptual framework that emphasizes Black homeowners’ socioeconomic challenges, challenges that go beyond the mortgage market, and focuses on the mediating role of liquid assets. Data from the Panel Study of Income Dynamics (PSID) enable a test of the framework through an examination of racial differences in the exit rates of homeowners during the recent housing crisis. The findings suggest that liquid assets played a significant role in such disparities. This is a pre-print of an article published in Demography. The final authenticated version is available online at https://doi.org/10.1007/s13524-020-00894-