Housing & Community Development

How Mortgage Finance Affects the Urban Landscape

How Mortgage Finance Affects the Urban Landscape
In Handbook of Regional and Urban Economics, Volume 5B, edited by Gilles Duranton, J. Vernon Henderson and William C. Strange. United Kingdom: North Holland, 2015.

Sewin Chan, Andrew Haughwout & Joseph Tracy
06/01/2015

This chapter considers the structure of mortgage finance in the United States and its role in shaping patterns of homeownership, the nature of the housing stock, and the organization of residential activity. We start by providing some background on the design features of mortgage contracts that distinguish them from other loans and that have important implications for issues presented in the rest of the chapter. We then explain how mortgage finance interacts with public policy, particularly tax policy, to influence a household's decision to own or rent and how shifts in the demand for owner-occupied housing are translated into housing prices and quantities, given the unusual nature of housing supply. We consider the distribution of mortgage credit in terms of access and price, by race, ethnicity, and income, and over the life cycle, with particular attention to the role of recent innovations such as nonprime mortgage securitization and reverse mortgages. The extent of negative equity has been unprecedented in the past decade, and we discuss its impact on strategic default, housing turnover, and housing investment. We describe spatial patterns in foreclosure and summarize the evidence for foreclosure spillovers in urban neighborhoods. Finally, we offer some thoughts on future innovations in mortgage finance.

Renting in America’s Largest Cities

Renting in America’s Largest Cities
Conducted by the NYU Furman Center & commissioned by Capital One National Affordable Rental Housing Landscape

Sean Capperis, Ingrid Gould Ellen, and Brian Karfunkel
05/28/2015

The supply of affordable rental housing failed to keep pace with demand in the 11 largest U.S. cities while rents rose faster than household incomes in five of the them. The NYU Furman Center/Capital One National Affordable Housing Landscape examines rental housing affordability trends in the central cities of the nation’s largest metropolitan areas (New York, Los Angeles, Chicago, Houston, Philadelphia, Dallas, San Francisco, Washington, D.C., Boston, Atlanta and Miami) from 2006 to 2013 and illustrates how these trends affected renters as more households chose to rent amid rising rental costs.

Nine of the 11 largest U.S. cities have seen falling vacancy rates and rising rents, which are hurting lower- and middle-income renters. “Affordable” rent should comprise less than 30 percent of a household’s income. With the exception of Dallas and Houston, the average renter in each metropolitan area could not afford the majority of recently available rental units in their city. The cities were even less affordable to low-income renters, who could afford no more than 11 percent of recently available units in the most affordable cities.

Since 2006, there has been an increase in the share of low- and moderate-income renters who are severely rent-burdened— meaning they face rent and utility costs equal to at least half of their income. In 2013, over a quarter of moderate-income renters were severely rent-burdened in seven of the cities in the study, while a significant majority of low-income renters in all 11 cities were severely rent-burdened. The percentage of low-income renters facing severe rent-burdens continued to rise in each of these cities and low-income renters are often most acutely impacted by the lack of affordable housing.

The study also found that in five cities, the proportion of moderate-income renters experiencing severe rent burdens grew remarkably, while in other cities, the situation for moderate-income renters either changed little or even improved.

The State of New York City’s Housing and Neighborhoods in 2014

The State of New York City’s Housing and Neighborhoods in 2014
NYU Furman Center. NYU School of Law and NYU Wagner School of Public Service.

Ingrid Gould Ellen, et al.
05/06/2015

The State of New York City’s Housing and Neighborhoods in 2014 report, published annually by the NYU Furman Center, provides a compendium of data and analysis about New York City’s housing, land use, demographics, and quality of life indicators for each borough and the city’s 59 community districts.

The report combines timely and expert analysis of NYU Furman Center researchers with data transparency. It is presented in three parts:

Part 1: Focus on Density

Each year, the State of the City report describes, contextualizes, and provides analysis on a pressing and policy-relevant issue affecting New York City. In 2014, the report focuses on the evolution of density in New York City’s neighborhoods over time, whether this evolution has been accompanied by changes in New Yorkers’ quality of life, and how the city might accommodate future population growth.

Part 2: City-Wide Analysis

The City-Wide Analysis provides a broad, longitudinal analysis of the New York City's housing and neighborhoods. The chapter is divided into five parts: land use and the built environment; homeowners and their homes; renters and their homes; residents; and neighborhood services and conditions.

Part 3: City, Borough, and Community District Data

The data section provides current and historical statistics for over 50 housing, neighborhood, and socioeconomic indicators at the city, borough, and community district levels. It also includes indicator definitions and rankings; methods; and an index of New York City’s community districts and sub-borough areas.

Accessibility of America’s Housing Stock: Analysis of the 2011 American Housing Survey

Accessibility of America’s Housing Stock: Analysis of the 2011 American Housing Survey
U.S. Department of Housing and Urban Development: Office of Policy Development and Research, March 2015

Luke Bosher, Sewin Chan, Ingrid Gould Ellen, Brian Karfunkel and Hsi-Ling Liao
03/01/2015

The American Housing Survey (AHS) is the most comprehensive national housing survey in the United States. Since 2009, AHS has included six core disability questions used in the American Community Survey. The questions address hearing, visual, cognitive, ambulatory, self-care, and independent living difficulties for each household member. For 2011, AHS added a topical module on accessibility. The module asked about the presence of accessibility features in housing units, including wheelchair accessibility features, and whether the accessibility features were used or not. Together, these data provide an unprecedented opportunity to examine the accessibility of the U.S. housing stock and to ask whether people with disabilities reside in accessible homes. In this report, we present summary measures of housing accessibility based on the 2011 AHS. To develop these summary measures, we examined United States (U.S.) and international standards and regulations regarding housing accessibility, reviewed the relevant literature, and conducted interviews with a set of disability and housing design experts. These interviews are further described in appendix A. Based on these summary measures, we describe how accessibility varies by housing market characteristics as well as resident characteristics such as age, disability status, and income. We also present evidence on the relationship between the need for and availability of accessible housing units, taking affordability of accessible units into account.

Mortgage Foreclosures and the Changing Mix of Crime in Micro-neighborhoods

Mortgage Foreclosures and the Changing Mix of Crime in Micro-neighborhoods
Journal of Research in Crime and Delinquency, Published online before print February 20, 2015. doi: 10.1177/0022427815572633

Johanna Lacoe and Ingrid Gould Ellen
02/20/2015

Objectives: The main objectives of the study are to estimate the impact of mortgage foreclosures on the location of criminal activity within a blockface. Drawing on routine activity theory, disorder theory, and social disorganization theory, the study explores potential mechanisms that link foreclosures to crime.

Methods: To estimate the relationship between foreclosures and localized crime, we use detailed foreclosure and crime data at the blockface level in Chicago and a difference-in-difference estimation strategy. Results: Overall, mortgage foreclosures increase crime on blockfaces. Foreclosures have a larger impact on crime that occurs inside residences than on crime in the street. The impact of foreclosures on crime location varies by crime type (violent, property, and public order crime).

Conclusions: The evidence supports the three main theoretical mechanisms that link foreclosure activity to local crime. The investigation of the relationship by crime location suggests that foreclosures change the relative attractiveness of indoor and outdoor locations for crime commission on the blockface.

Is neighbourhood destiny? Exploring the link between neighbourhood mobility and student outcomes

Is neighbourhood destiny? Exploring the link between neighbourhood mobility and student outcomes
Urban Studies. January 8, 2015. doi: 10.1177/0042098014563469

Sarah Cordes, Amy Ellen Schwartz, Leanna Stiefel and Jeffrey Zabel
01/08/2015

The notion that children from ‘good’ neighbourhoods are destined for success while those from ‘bad’ neighbourhoods are destined for failure has considerable popular appeal. Residential location is strongly linked to school quality, access to educated adults, exposure to violence, etc. There is, however, surprisingly little evidence on the link between the neighbourhood in which a child begins school and later schooling outcomes. Understanding early neighbourhood experiences is important for determining whether students are ‘stuck’ in neighbourhoods of disadvantage. It is also critical for determining the extent to which students who begin their schooling careers in disadvantaged neighbourhoods are destined for poor schooling outcomes, and conversely, whether changing neighbourhood context improves student performance. In this study, therefore, we document how students’ early neighbourhood and schooling experiences are related to later success in school, and explore how changing neighbourhood and school contexts explain differences in academic outcomes. Using data from New York City (NYC), we construct a panel containing all students enrolled as first graders in NYC public schools in 1996–1997, following them through academic years 2007–2008, which would be their 12th grade year if they made standard academic progress (annual one-grade promotion). Far from supporting the simplistic story of ‘dead-end’ neighbourhoods, our analyses describe a situation where students from poor neighbourhoods actually move more often than their peers in less disadvantaged neighbourhoods and are more likely to experience changes in neighbourhood and school quality, with 45.7% of neighbourhood moves from the poorest neighbourhoods being made to significantly higher quality neighbourhoods.

Walking, Obesity and Urban Design in Chinese Neighborhoods

Walking, Obesity and Urban Design in Chinese Neighborhoods
Preventive Medicine, Vol. 39, supp., pp. S799-S85

Alfonzo, M., Z. Guo, L. Lin, and K. Day
12/01/2014

Objective: We examined the connections (1) between the design of the built environment and walking, (2) between the design of the built environment and obesity, and (3) between walking and obesity and income in urban settings in China. 

Methods: Six neighborhoods with different built environment characteristics, located in the Chinese cities of Shanghai and Hangzhou, were studied. Data on walking and other physical activity and obesity levels from 1070 residents were collected through a street intercept survey conducted in 2013. Built environment features of 527 street segments were documented using the Irvine–Minnesota Inventory-China (IMI-C) environmental audit. Data were analyzed using the State of Place™ Index. 

Results: Walking rates, household income and Body Mass Index (BMI) were related; neighborhoods with a higher State of Place™ Index were associated with higher rates of walking. 

Conclusion: This study began to establish an evidence base for the association of built environment features with walking in the context of Chinese urban design. Findings confirmed that the associations between “walkable” built environment features and walking established in existing research in other countries, also held true in the case of Chinese neighborhoods.

Application of Global Positioning System Methods for the Study of Obesity and Hypertension Risk Among Low-Income Housing Residents in New York City: A Spatial Feasibility Study.

Application of Global Positioning System Methods for the Study of Obesity and Hypertension Risk Among Low-Income Housing Residents in New York City: A Spatial Feasibility Study.
Duncan DT, Regan SD, Shelley D, Day K, Ruff RR, Al-Bayan M, Elbel B. Application of Global Positioning System Methods for the Study of Obesity and Hypertension Risk Among Low-Income Housing Residents in New York City: A Spatial Feasibility Study. Geospatial Health. 2014; 9(1): 57-70.

Duncan DT, Regan SD, Shelley D, Day K, Ruff RR, Al-Bayan M, Elbel B.
11/10/2014

The purpose of this study was to evaluate the feasibility of using global positioning system (GPS) methods to understand the spatial context of obesity and hypertension risk among a sample of low-income housing residents in New York City (n = 120). GPS feasibility among participants was measured with a pre- and post-survey as well as adherence to a protocol which included returning the GPS device as well as objective data analysed from the GPS devices. We also conducted qualitative interviews with 21 of the participants. Most of the sample was overweight (26.7%) or obese (40.0%). Almost one-third (30.8%) was pre-hypertensive and 39.2% was hypertensive. Participants reported high ratings of GPS acceptability, ease of use and low levels of wear-related concerns in addition to few concerns related to safety, loss or appearance, which were maintained after the baseline GPS feasibility data collection. Results show that GPS feasibility increased over time. The overall GPS return rate was 95.6%. Out of the total of 114 participants with GPS, 112 (98.2%) delivered at least one hour of GPS data for one day and 84 (73.7%) delivered at least one hour on 7 or more days. The qualitative interviews indicated that overall, participants enjoyed wearing the GPS devices, that they were easy to use and charge and that they generally forgot about the GPS device when wearing it daily. Findings demonstrate that GPS devices may be used in spatial epidemiology research in low-income and potentially other key vulnerable populations to understand geospatial determinants of obesity, hypertension and other diseases that these populations disproportionately experience.

Pages

Subscribe to Housing & Community Development