This article assesses the impact of housing market conditions on the theoretically motivated and empirically observed negative relationship between loan to value ratios and home maintenance expenditures.
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This article assesses the impact of housing market conditions on the theoretically motivated and empirically observed negative relationship between loan to value ratios and home maintenance expenditures.
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41 p.
Notes
Abstract: This paper assesses the impact of housing market conditions on the theoretically motivated and empirically observed negative relationship between loan to value ratios and home maintenance expenditures. If the relationship is causal, then a down housing market will result in significantly decreased upkeep in the housing stock. The large rise and fall in home prices during the 2001-2009 period allows a unique opportunity to analyze the response of homeowners to changing housing market conditions. Data from the American Housing Survey is analyzed to confirm previous work that a negative relationship exists between loan to value ratios and routine maintenance expenditures; however, this relationship does not move in the expected direction when examined along with temporal variations in market conditions. Panel analysis reveals a more complex story. Households most likely to be at risk for default do decrease maintenance expenditures when default risk increases, but other households actually increased maintenance expenditures when the housing market conditions became less favorable.
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Leonard, Tammy.The Impact of Housing Market Conditions on Residential Property Upkeep,
article,
October 22, 2012;
New York, New York.
(https://digital.library.unt.edu/ark:/67531/metadc1062054/:
accessed February 18, 2025),
University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu;
crediting UNT College of Arts and Sciences.