Race differences in middle class lifestyle: The role of home ownership

This paper examines race differences in two aspects of “middle class” lifestyle: home ownership and net worth. Home ownership indicates stability; and for older persons net worth is an important part of economic status. Data from the NLS studies of older men are analyzed. The major findings are: (1) while whites at any earnings level are very likely to own homes by ages 50–64, only at relatively high earning levels do blacks begin to approach the home ownership rates of whites; (b) the net worth of blacks is substantially lower than that of whites after adjusting for variables in a standard status attainment model; and (c) however, among home owners the race difference as well as effects of other variables are much smaller than for renters. This is attributed to forced saving through home ownership. The paper concludes with a discussion of possible sources of low home ownership rates and low net worth of blacks and the implication of these findings for the study of middle class status.