Why has home ownership fallen among the young?
Why has home ownership fallen among the young?
We document that home ownership of households with “heads\" aged 25-44 years fell substantially between 1980 and 2000 and recovered only partially during the 2001-2005 housing boom. The 1980-2000 decline in young home ownership occurred as improvements in mortgage opportunities made it easier to purchase a home. This paper uses an equilibrium life-cycle model calibrated to micro and macro evidence to understand why young home ownership fell over a period when it became easier to own a home. Our findings indicate that a trend toward marrying later and the increase in household earnings risk that occurred after 1980 account for 3/5 to 4/5 of the decline in young home ownership
housing, home ownership, tenure choice, first-time home-buyers, marriage, income risk
University of Southampton
Gervais, Martin
c03b188f-08e2-42a6-abca-b64b362a4065
Fisher, Jonas
c3aef84b-e2be-4dee-9312-b8648d658ff0
2009
Gervais, Martin
c03b188f-08e2-42a6-abca-b64b362a4065
Fisher, Jonas
c3aef84b-e2be-4dee-9312-b8648d658ff0
Gervais, Martin and Fisher, Jonas
(2009)
Why has home ownership fallen among the young?
(Discussion Papers in Economics and Econometrics, 907)
Southampton, UK.
University of Southampton
44pp.
Record type:
Monograph
(Discussion Paper)
Abstract
We document that home ownership of households with “heads\" aged 25-44 years fell substantially between 1980 and 2000 and recovered only partially during the 2001-2005 housing boom. The 1980-2000 decline in young home ownership occurred as improvements in mortgage opportunities made it easier to purchase a home. This paper uses an equilibrium life-cycle model calibrated to micro and macro evidence to understand why young home ownership fell over a period when it became easier to own a home. Our findings indicate that a trend toward marrying later and the increase in household earnings risk that occurred after 1980 account for 3/5 to 4/5 of the decline in young home ownership
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Published date: 2009
Keywords:
housing, home ownership, tenure choice, first-time home-buyers, marriage, income risk
Organisations:
Economics
Identifiers
Local EPrints ID: 71045
URI: http://eprints.soton.ac.uk/id/eprint/71045
ISSN: 0966-4246
PURE UUID: fff75ad5-e4a9-4c6a-a003-0860d2c5c92f
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Date deposited: 13 Jan 2010
Last modified: 13 Mar 2024 20:19
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Contributors
Author:
Martin Gervais
Author:
Jonas Fisher
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