Long-Term Impacts of Individual Development Accounts on Homeownership among Baseline Renters: Follow-Up Evidence from a Rando

American Economic Journal: Economic Policy

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Date Published 2013
Version 5(1): 122–145
Primary Author Michal Grinstein-Weiss
Other Authors Michael Sherraden, William G. Gale, William M. Rohe, Mark Schreiner, and Clinton Key
Theme Housing Finance Subsidies


We examine the long-term effects of a 1998–2003 randomized experiment in Tulsa, Oklahoma with Individual Development Accounts that offered low-income households 2:1 matching funds for housing down payments. Prior work shows that, among households who rented in 1998, homeownership rates increased more through 2003 in the treatment group than for controls. We show that control group renters caught up rapidly with the treatment group after the experiment ended. As of 2009, the program had an economically small and statistically insignificant effect on homeownership rates, the number of years respondents owned homes, home equity, and foreclosure activity among baseline renters.

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