Home Ownership This High?

Doug Henwood dhenwood at panix.com
Mon Oct 26 14:06:50 PST 1998


Brad De Long wrote:


>How much, if any, of this increase in *incomes* is an increase in *material
>welfare* is a hard question. But it does mean that households have more
>cash income with which to pay their mortgages.

And bigger mortgages, too. Here are the equity and loan-to-value ratios for owner-occupiers, from the Fed's flow of funds' household balance sheets <http://www.bog.frb.fed.us/releases/z1/Disk/btabs.zip>.

owners' mortgage/

equity value

1945 86.3% 13.7%

1950 82.9% 17.1%

1960 72.5% 27.5%

1970 68.7% 31.3%

1980 69.2% 30.8%

1990 62.3% 37.7%

1991 60.5% 39.5%

1992 59.7% 40.3%

1993 58.8% 41.2%

1994 57.5% 42.5%

1995 57.1% 42.9%

1996 56.8% 43.2%

1997 56.7% 43.3%

Doug



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