Title

The Influence of the Home Owners' Loan Corporation on Housing Markets During the 1930s

Document Type

Article

Publication Date

12-22-2010

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.

Journal

Review of Financial Studies

Volume

24

Issue

6

First Page

1782

Last Page

1813