Are households more likely to be homeowners when “housing risk” is higher? We show that home-ownership rates and loan-to-value (LTV) ratios at the city level are strongly negatively correlated with local house price volatility. However, causal inference is confounded by house price levels,...

Are households more likely to be homeowners when “housing risk” is higher? We show that home‐ownership rates and loan‐to‐value (LTV) ratios at the city level are strongly negatively correlated with local house price volatility. However, causal inference is confounded by house price...