The influence of the Home Owners' loan corporation on housing markets during the 1930s

Price V. Fishback; Alfonso Flores-Lagunes; William C. Horrace; Shawn Kantor; Jaret Treber

doi:10.1093/rfs/hhq144

The influence of the Home Owners' loan corporation on housing markets during the 1930s

Price V. Fishback, Alfonso Flores-Lagunes, William C. Horrace, Shawn Kantor, Jaret Treber

Department of Economics

Research output: Contribution to journal › Article › peer-review

27 Scopus citations

Abstract

Problems with mortgage financing are widely considered to be a major cause of the recent financial meltdown. Several modern programs have been designed to mimic the Home Owners' Loan Corporation (HOLC) of the 1930s. We analyze the impact of the HOLC on the nonfarm rental and owned home markets for over 2,800 counties in the United States in the 1930s. In sparsely populated counties, where financial markets were not as well developed as in larger cities, the HOLC stimulated demand for owned housing more than it influenced supply. In rental markets the HOLC appears to have contributed to an increase in supply.

Original language	English (US)
Pages (from-to)	1782-1813
Number of pages	32
Journal	Review of Financial Studies
Volume	24
Issue number	6
DOIs	https://doi.org/10.1093/rfs/hhq144
State	Published - Jun 2011

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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abstract = "Problems with mortgage financing are widely considered to be a major cause of the recent financial meltdown. Several modern programs have been designed to mimic the Home Owners' Loan Corporation (HOLC) of the 1930s. We analyze the impact of the HOLC on the nonfarm rental and owned home markets for over 2,800 counties in the United States in the 1930s. In sparsely populated counties, where financial markets were not as well developed as in larger cities, the HOLC stimulated demand for owned housing more than it influenced supply. In rental markets the HOLC appears to have contributed to an increase in supply.",

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AB - Problems with mortgage financing are widely considered to be a major cause of the recent financial meltdown. Several modern programs have been designed to mimic the Home Owners' Loan Corporation (HOLC) of the 1930s. We analyze the impact of the HOLC on the nonfarm rental and owned home markets for over 2,800 counties in the United States in the 1930s. In sparsely populated counties, where financial markets were not as well developed as in larger cities, the HOLC stimulated demand for owned housing more than it influenced supply. In rental markets the HOLC appears to have contributed to an increase in supply.

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The influence of the Home Owners' loan corporation on housing markets during the 1930s

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