In this article, factor analyses are used to identify homogeneous neighborhoods, and canonical analyses are used to examine the relationships between neighborhoods and credit lending in the Cleveland, Ohio, area. The results reveal that variations in the supply and demand for loans are best explained by declining employment opportunities and demographic changes. The canonical analyses strongly indicate that the supply and demand for loans vacillate as a consequence of job insecurities, the decline in earnings capacity of less skilled workers, and long-term population and household declines. Further, the recessions and boom period of the 1980s differentially affected suburban mortgage submarkets.
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