flexiblefullpage -
Currently Reading

Report: Foreclosures don't significantly reduce housing consumption

Advertisement
billboard -
Data & Research

Report: Foreclosures don't significantly reduce housing consumption

Despite the recent flood of foreclosures on residential mortgages, little is known about what happens to borrowers and their households after their mortgage has been foreclosed. A new study looks at the post-foreclosure experience of U.S. households.


By Mary Beth Nevulis, HousingZone Contributing Editor September 6, 2011
foreclosures, market conditions, market demand, housing market

Despite the recent flood of foreclosures on residential mortgages, little is known about what happens to borrowers and their households after their mortgage has been foreclosed. A Federal Reserve Board of Governors studied the post-foreclosure experience of U.S. households using a unique dataset based on the credit reports of a large panel of individuals from 1999 to 2010. The results suggest that, on average, foreclosure does not impose an economic burden large enough to severely reduce housing consumption.

For example, if post-foreclosure households tend to rent their subsequent housing, the flood of foreclosures could signal a substantial increase in the demand for rental units. Since rental and owner-occupied housing units tend to be different types of structures in the United States, this shift in demand could alter the type of residential structures in the economy. Beyond their impact on housing markets, foreclosures can influence personal finance, family structure, employment opportunities, the quality of available schooling and many other dimensions of an individual's economic and social welfare.

In summary, the majority of post-foreclosure migrants do not end up in substantially less-desirable neighborhoods or more crowded living conditions. Since housing unit quality is highly correlated with neighborhood amenities or desirability, they are not likely to live in considerably lower quality homes than they did before.

For the full report:  www.federalreserve.gov/pubs/feds/2011/201132/index.html

Related Stories

Business

November Data: Custom Architects Weigh In, New Construction Trends, Contractor Confidence, and Material Price Changes

We've collected highlights from a number of data reports published throughout the industry in November

Codes & Standards

OSHA's Preliminary List of 2023's Most Frequently Cited Standards in Violations

Fall-related violations continue to plague the construction industry despite ample free education and resources 

Case Studies

New Pandemic Task Force to Enhance Building Safety

A soon-to-be-appointed Pandemic Task Force seeks to strengthen the built environment in the face of disease-related threats

Data & Research

October's Data From Around the Industry

In October, we saw reports on remodeling spending, individual septic system installations, and the widespread use of rate buydowns to sell new homes 

Custom Builder

Take Part in Our Annual Housing Forecast

The best way to understand the residential construction industry is to speak with residential construction professionals. And with that being said, we humbly ask for your input in this year's survey

Custom Builder

How the Zero Energy Ready Home Update Emphasizes Resilience and Decarbonization

ZERH Version 2, released in December of 2022, will boost the efficiency and performance of single-family homes, preparing them for the increasingly oppressive weather

Business

How to Attract and Retain a Multi-Generational Workforce

Attracting skilled laborers remains a top priority for the construction industry, but according to Steve Bench, founder of Generational Consulting, the biggest roadblocks to recruitment and retainment are generational differences

Construction

Small-Duct, High-Velocity HVAC: What It Is and Why It Pairs Well With Modular Homes

Modular home manufacturers, builders, and owners now have many choices when it comes to indoor climate systems, but small-duct, high-velocity (SDHV) systems may be the perfect fit for these types of homes

Codes & Standards

An Introduction to the Zero Energy Ready Home Program

Late in 2022, the U.S. Department of Energy's Zero Energy Ready Home program announced the rollout of ZERH Single Family Version 2

Construction

Guest Column: Residential Construction Trends to Follow in 2023

PERC shares homeowner trends to keep on your radar in the New Year.

Advertisement
boombox1 -
Advertisement
boombox2 -
Advertisement
boombox3 -
Advertisement
native1 -

More in Category

Business

November Data: Custom Architects Weigh In, New Construction Trends, Contractor Confidence, and Material Price Changes

We've collected highlights from a number of data reports published throughout the industry in November

Codes & Standards

OSHA's Preliminary List of 2023's Most Frequently Cited Standards in Violations

Fall-related violations continue to plague the construction industry despite ample free education and resources 

boombox4 -
Case Studies

New Pandemic Task Force to Enhance Building Safety

A soon-to-be-appointed Pandemic Task Force seeks to strengthen the built environment in the face of disease-related threats

Data & Research

October's Data From Around the Industry

In October, we saw reports on remodeling spending, individual septic system installations, and the widespread use of rate buydowns to sell new homes 

boombox4 -
Advertisement
native2 -
Advertisement
halfpage1 -