Journal Article

Economic History: The First Rung of Housing Markets

Abstract: The concept of first-rung housing isn't new. Homeowners have rented out single rooms going back to our nation's colonial era. Widowers and empty nesters who had more space than they needed would turn their single-family homes into boarding houses, offering a warm bed and a hot meal to guests traveling through town. "Early single-room rentals provided a mutually beneficial relationship," wrote Andrew Justus, a housing policy expert at the Niskanen Center, in a 2022 analysis. "The arrangement allowed newcomers and those who needed no-frills housing to access housing that met their immediate needs. At the same time, this arrangement would allow homeowners to supplement their income and stay in their homes during retirement or other periods of diminished cash flow."

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Econ Focus

Publication Date: 2025-12-10

Volume: 25

Issue: 4Q