Growth Project: Phase I

Building Something Great

Project Objective

Assess the current data within academic literature to

understand the impact of homeownership and stable

housing, and identify key trends by looking at outcomes

that specifically include finances, health, community

involvement, and education.

What is Homeownership?

The situation of owning one’s home and having a mortgage.

Source: www.collinsdictionary.com

• Lack of Variability– Too few homes in low price range near places of employment

• Mobility– People below poverty line are twice as likely to move

• Demographics– Minorities have always owned less than whites

– Income and wealth is typically lower

Overview of Homeownership

Source: Social Benefits of Stable Housing, 2012; Rohe and Watson, 2007

Value of a Home in Ohio

Source: www.zillow.com, Oct. 2014

Average home value: $116,100

Average price of a home: $132,500

Average rent price: $795/ month

• Finances

• Health Benefits

• Community Involvement

• Educational Benefits

• Summary and Conclusion of Trends

• Next Steps

Trends in Homeownership

Finances

Growth Project: Phase I

Homeownership and Income

Source: U.S. Census Bureau, 2014

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 201440

45

50

55

60

65

70

75

80

85

90

67.2 67.7 67.6 68 69.2 68.6 68.7 68.2 68.1 67.4 66.9 65.9 65.5 65 64.7

50.8 51.7 51.5 51.653.1 52.7 52.6 52 51.8 51.5 51.9

50.6 50.6 50.3 49.8

81.8 82 82.283.6 83.9 84 84.1 83.4 83.5

82.2 81.9 81.2 80.5 79.7 79.5

U.S. Average Lower than Average Higher than Average

Perc

enta

ge O

wne

rshi

pHomeownership Rates in America

Homeownership and Income

Source: American Community Survey, 2010

Under $10,000 $10,000-$25,000 $25,000-$50,000 $50,000-$100,000 Over $100,0000%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

32%

46%

60%

75%

88%

Household Income and Homeownership Rates

Homeownership and Income• Correlation between homeownership and a heavy financial

burden• Low income households must devote a greater percentage

of income toward housing and utilities

U.S. Average Habitat's Limit Suggested Limit Danger point Low-Income Households

0%

10%

20%

30%

40%

50%

60%

16%

30%35%

45%51%

Percentage of Pre-tax Income Devoted to Housing & Utilities

Source: Hanna, Yuh, & Chatterjee, 2012, U.S. Bureau of Labor Statistics, 2008, Greninger et al., 1996

Homeownership and Income• Financial Management and Homeownership

– Low-income individuals tend to have lower financial literacy,

numeracy skills, and overall financial knowledge

– Financial coaching can decrease payment delinquency

Source: Lax et al., 2004, Moulton, Loibl, Samak, & Collins, 2013

Homeownership and Job Stability

• Area that needs further study

• There is a potential:– Increase in job stability

• More motivation to make payments

• Social Networking

– Decrease in job stability• Geographic limitations

Source: Dietz & Haurin, 2003

Health BenefitsGrowth Project: Phase I

Positive Mental Health Benefits• Sense of control

– Homeowners believe they are in greater command of important life events

• Higher self-esteem– Higher parental self-esteem impacts children’s self-esteem

levels• Trust in neighbors

– Homeowners give a certain place attachment to their neighborhood, giving them a stronger sense of community

• Length of time spent in home– The longer a homeowner spends in their home, the more likely

they are to form social ties within the community

Source: Mantrunk, 2012; Social Benefits of Homeownership and Stable Housing, 2012; Rohe &

Lindblad, 2013

Negative Health Effects• Mental Health

– Fear– Anxiety– Depression– Hopelessness– Stress

• Physical Health– Hypertension– Renal disease– Exposure to toxic substances– Poor respiratory conditions– Injuries such as burns or falls

Source: Rohe & Linblad, 2013, Naturalleader.com

Building a Healthier Home• Creating healthier homes

– Hard-flooring

– Low-/No volatile organic compounds products

– Non-toxic materials & low-/no formaldehyde products

– Enhanced insulation technology

– Enhanced moisture control

Source: Naturalleader.com 2014

• 63% of homeowners believe that products and practices used in homes can have an impact on health

• Commonly cited health conditions impacted by home-related factors (mold, mildew, pollution) are:– Allergies

– Asthma/respiratory illnesses

– Headaches/migraines

Source: Naturalleader.com, 2014

Can a Home Influence Health?

Can a Home Influence Health?• Positive health benefits associated with homeownership:

– Fewer instances of illnesses overall

• Fewer cases of respiratory illness

– 38% green vs. 12% non-green

• Fewer sick days from school or work

– Better sleep for homeowners

• 56% green vs. 16% non-green

Source: Naturalleader.com 2014

Habitat Pilot Study: Minnesota• Safety

– 84% of respondents said they felt their child was safer

• Overall Health– 53 respondents admitted to having respiratory illnesses

– 30% of respondents said they visited the doctor less frequently

Source: Habitat for Humanity of Minnesota Homeowner Impact Study, 2011

Community Involvement

Growth Project: Phase I

Community Involvement• Increased homeowner involvement:

– More political involvement

– More social capital

– Stronger bonds to neighbors

– More likely to be involved with organizations dedicated to

improving neighborhood

Source: Brisson & Usher, 2007; Dietz & Haurin, 2003; McCabe, 2013; Rohe & Lindblad,

2013; Rohe & Stegman, 1994

Community Involvement• Why might they be more involved?

– Financial self-interest

– “Dwellings as a bundle of interests”

– More likely to live in neighborhoods with opportunities for school

involvement

Source: Manturuk, Lindblad, & Quercia,2012

Educational Benefits

Growth Project: Phase I

Educational Benefits for Children• More likely to stay in school

• Raised in a more stimulating home environment

• Have higher productivity levels

• Achieve higher levels of education

• Earn higher levels of income

Source: Haurin, Parcel, & Haurin, 2002; Green & White, 1997; Boehm & Schlottmann, 1999

Educational Benefits for Children

• Parents acquire do-it-yourself skills, interpersonal skills,

and financial skills through homeownership, which they

can pass onto their children

• Greater access to educational opportunities

Sources: Green & White, 1997; Ellen & Turner, 1997; Jencks & Mayer, 1990

Educational Benefits for Adults• Homeownership in low-income families:

– Significantly less likely to drop out of high school

– More likely to complete a post-secondary education

– Less likely to experience teen pregnancy

– Raises overall educational attainment, earning and welfare

independence

Positive effects do not apply if income is over 150% of poverty line

Source: Green & White, 1997; Aaronson, 2000; Harkness & Newman, 2003; Green, Painter & White,

2012

Summary and Conclusion of Trends

Growth Project: Phase I

“When you’re a homeowner, you…”

Next StepsGrowth Project: Phase I

Next Steps

• Discuss VoC interview guide

• Schedule and conduct VoC interviews

• Analyze results

• Phase II presentation (January)

Growth Project: Phase I

Building Something Great