Linneman, Peter D.Wachter, Susan M.2023-05-232023-05-231989-10-012006-07-06https://repository.upenn.edu/handle/20.500.14332/42491This paper utilizes micro data to directly quantify the impact of mortgage underwriting criteria on individual homeownership propensities. To determine whether a family is constrained by these criteria, the optimal home purchase price is estimated. The results indicate that wealth and income constraints both reduce homeownership propensities, with a stronger impact for wealth constraints. Mortgage market innovations of the early 1980s seem to have reduced these effects. The research indicates, however, that even in well-developed capital markets, the presence of borrowing constraints adversely affects homeownership propensities.Economics, Economic Development and Real EstateHousing and Community DevelopmentArticle