The Influence of the Home Owners' Loan Corporation on Housing Markets During the 1930s
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.
Treber, Jaret and al., et, "The Influence of the Home Owners' Loan Corporation on Housing Markets During the 1930s" (2010). Review of Financial Studies 24(6): 1782-1813. Faculty Publications. Paper 44.
Review of Financial Studies