Differences in foreclosure rates of owner-occupied and non-owner-occupied residential multi-family properties during depressed housing market conditions (2007-2008)

dc.contributor.advisorCatano, Francis N.
dc.contributor.authorDhliwayo, Lovemore Liberty
dc.contributor.committeeMemberLeeder, Elaine
dc.contributor.committeeMemberBasolo, Victoria
dc.description.abstractThis dissertation study examines whether owner-occupation (OO), in depressed housing markets, has significant impact on foreclosure rates of residential multi-family properties in Manchester and Nashua, New Hampshire. The study is an extension on Wardrip & Pelletiere's 2008 research that covered four New England states: New Hampshire, Connecticut, Rhode Island and Massachusetts. In this study Wardrip & Pelletiere found that residential multi-family properties have significantly higher foreclosure rates compared to single-family properties. This researcher adds value to Wardrip & Pelletiere's study by arguing that owner-occupation is a significant factor in foreclosures of residential real estate in general, and especially, in foreclosures of residential multi-family properties, in general. To examine the problem of increasing and higher foreclosure rates amongst residential multi-family properties, the study uses quantitative and qualitative research methods. The quantitative component covers the entire population of residential 2- to 4-unit multifamily properties in Manchester and Nashua over the 2-year period from 2007 to 2008. The study compares the foreclosure rates of owner-occupied and non-owner-occupied residential multi-family properties in the two cities. For hypothesis testing Independent Samples t Test was used to measure differences in the maintenance and upkeep of randomly selected owner-occupied and non-owner-occupied multi-family properties in Manchester. Geographical Information System (GIS) mapping was used to lay out and analyze the spatial distribution of all residential multi-family properties, and the location of foreclosures within that distribution, in Manchester. Detailed interviews were conducted with key informants representing major multi-family stakeholder institutions in New Hampshire to gather their perceptions on owner-occupied and non-owneroccupied multi-family homeownership. The study found that there are significant differences between the foreclosure rates of owner-occupied and non-owner-occupied multi-family properties in Manchester and Nashua, New Hampshire. To theoretically explain the differences in foreclosure rates of OO and NOO multi-family properties two theoretical frameworks were developed and applied, i.e., "Broken Windows" and "Meaning of Home". Broken Windows (BW) theory, attributed to two criminologists, James Wilson and George Kelling, says that if broken windows remain unrepaired, vandals will soon break the building's remaining windows and the windows of abutting properties and those of other properties in the neighborhood. This researcher uses "Broken Windows" as a metaphor for the hypothesized relative neglect in upkeep and maintenance of NOO multi-family properties. "Meaning of Home" theory is a construct developed from four concepts: "Home Use Value"; "Meaning of Home"; "Rental Value"; and "Investment Value" as applied to owner-occupied and non-owner-occupied multi-family homeownership, based on perceived and actual expectations, behaviors and the general psychology of multi-family homeowners. Homeowners are classified as owner-occupiers (OOs) and non-owner-occupiers (NOOs). The study argues that owner-occupiers are usually more financially and psychologically invested in the multi-family property and the neighborhood they live in. On the other hand, non-owner-occupying investors are hypothesized to be less socially and economically invested in the property and neighborhood, mainly because neither is their own home. The researcher argues that if rental income and investment value are not on a financially rewarding trajectory for the non-owner-occupying multi-family investor, there is no, or very little, incentive for him / her to continue holding on to the asset. The study found that, on average, owner-occupied multi-family properties are significantly better maintained, and have positive social and economic externalities for their neighborhoods, communities and local authorities. This is in keeping with the Meaning of Home theory as developed and advanced in this study. Non-owneroccupied multi-family properties were found to be significantly more in disrepair, to have significantly less curb appeal, and to have significantly greater risk of being foreclosed in depressed housing market conditions. Based on GIS mapping analyses of Manchester, New Hampshire, this study also found that owner-occupied and nonowner occupied multi-family buildings tend to cluster around each other or to be clustered in specific neighborhoods of the city. The study recommends that low-income to moderate-income multi-family homeownership policies be seriously considered in their varied formats, including but not limited to having exploratory and specific programs that support, promote and finance owner-occupation of residential multi-family properties. The study also raises a strong case for policy makers to promote policies that support mixed-income neighborhood development, and explore possibilities for the conversion of non-owneroccupied residential multi-family buildings to owner-occupied condominiums, housing co-operatives and land trusts. (Author abstract)en_US
dc.description.bibliographicCitationDhliwayo, L. L. (2010). Differences in foreclosure rates of owner-occupied and non-owner-occupied residential multi-family properties during depressed housing market conditions (2007-2008). Retrieved from http://academicarchive.snhu.eduen_US
dc.description.degreeDoctor of Philosophy (Ph.D.)en_US
dc.description.schoolSchool of Community Economic Developmenten_US
dc.digSpecsPDF/A-1a v2.3en_US
dc.format.extent6331078 bytesen_US
dc.publisherSouthern New Hampshire Universityen_US
dc.relation.requiresAdobe Acrobat Readeren_US
dc.rightsAuthor retains all ownership rights. Further reproduction in violation of copyright is prohibiteden_US
dc.rightsHolderDhliwayo, Lovemore Liberty
dc.subject.lcshSouthern New Hampshire University -- Theses (Community Economic Development)en_US
dc.subject.otherforeclosure preventionen_US
dc.subject.otherNew Hampshire (US)en_US
dc.subject.otherManchester (NH)en_US
dc.subject.otherNashua (NH)en_US
dc.titleDifferences in foreclosure rates of owner-occupied and non-owner-occupied residential multi-family properties during depressed housing market conditions (2007-2008)en_US
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