The First Time Homebuyer Tax Credit

The First-Time Homebuyer Tax Credit: Targeting and Impacts

The First Time Homebuyer (FTHB) Tax Credit stimulated the housing market from 2008-2010, comprising approximately 40% of all home purchase transactions in Ohio during this period. Questions arise about whether or not the FTHB credit was "adequately targeted"; that is, where were most transactions from the credit concentrated? Were more purchase transactions stimulated in areas hardest hit by the mortgage crisis (with higher foreclosure rates and unemployment), or were they simply concentrated in areas that were relatively stable without the credit? This analysis seeks to address these questions, about the targeting and impact of the FTHB tax credit, using data from Ohio (county recorder data at the property level on all sales transactions from 2004-2010, matched with tax data on the FTHB tax credit from the Ohio Department of Taxation.

For more information about this analysis, please contact Stephanie Moulton.