Our recent report, by Sharon Cornelissen PhD and Austin Harrison PhD, investigates the substantial barriers that FHA loan recipients face in Massachusetts, reflecting broader national issues. It highlights the stigmatization of FHA loans in competitive markets, noting how this stigmatization affects buyers—predominantly first-time and minority individuals—by limiting their access to desirable neighborhoods, thereby perpetuating socio-economic and racial segregation in housing.

The report offers crucial policy recommendations to mitigate these challenges, such as enforcing anti-discrimination laws regarding financing, revising FHA appraisal standards, and enhancing real estate professionals’ understanding of FHA loans. These measures aim to create a fairer housing market and support FHA buyers in overcoming the systemic hurdles that currently hinder their ability to compete effectively in high-demand areas.