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Publication Date

November 2009

Author(s)

Jong-Gyu Paik, Mark R. Lindblad, Roberto G. Quercia, Taya R. Cohen

Low- and moderate-income renters who intend to own a home are more likely to purchase a home during the following year than renters who do not intend to own a home. This finding is encouraging because it suggests that strong intentions can help people achieve their goals, even when their goals are difficult to attain and require long-term planning and financial capacity.

This study extends the theory of planned behavior (TPB; Ajzen, 1991) to the domain of homeownership. Researchers used a four-year longitudinal data set of 919 low-and-moderateĀ  income renters to explore factors associated with greater homeownership intentions and actual home purchases.

Their findings provide strong support for the TPB. Favorable attitudes and subjective norms and greater perceptions of control were all associated with greater homeownership intentions. Homeownership intentions, in turn, predicted home purchases during the following year.

The analysis included relevant demographic and economic variables, and the significance of income and geographic location suggests a distinction between respondentsā€™ perceived versus actual control.

The use of a longitudinal panel data set represents an important advance over much of the prior TPB literature, which tends to use cross-sectional designs and focus on short-term goals.

Researchers discuss the implications for behavioral prediction using the TPB as well as implications for housing policy.


Topics(s): Affordable Homeownership, Housing Policy, Mortgage Finance