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The Park Place Economist

Abstract

The following study observes certain indicators that impact homeownership in the state of Wisconsin. By utilizing effective demand as the theoretical framework, it is established that the utility and budget of an individual is what creates the decision to own their home. If a home can provide a service the consumer needs and fulfills their utility, the consumer will make the decision to buy the home given they have the ability to pay. By comparing Rural vs. Non-Rural areas, it is found that when an individual lives in a rural area they are more likely to own their home. Additionally, other indicators such as race and poverty level status create an increased likelihood of homeownership. By assessing these indicators, it is made clear that certain policy implications like educational programs or cheaper housing in certain areas could help those who are less likely to obtain homeownership be given a greater opportunity to own. Additionally, these factors can assist lenders on the banking side in understanding which customers are more likely to be able to own their home.

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