Do Homeownership and Rent Subsidies Protect Individuals from Material Hardship? Robert I. Lerman and Sisi Zhang, November 2014.

“Homeowners and subsidized renters experience significantly lower material hardship than unsubsidized renters, even after taking account of income, income variability, race, education, and family structure. Homeownership conveys more protection against hardship than do rent subsidies. Using the Survey of Income and Program Participation, we estimate the likelihood of experiencing any material hardship is about 9.2 percent lower for subsidized renters and 24.5 percent lower for homeowners. Even homeowners who bought just before the recent crash in home prices experienced less hardship than unsubsidized renters. White, black, and Hispanic homeowners all suffer less material hardship than their renting counterparts (whether subsidized or unsubsidized). This reduction is most pronounced among Hispanic families.”