Rising inequalities in access to home ownership among young households in France, 1973-2013

Carole Bonnet, Bertrand Garbinti and Sébastien Grobon

Working papers from Banque de France

Abstract: Amongst young households (ages 25 to 44), inequalities in first-time home-ownership and in the amount of acquired real estate assets have increased between the most modest and the most affluent groups over the past forty years. According to Insee s Housing surveys, 32% of young low-income households were homeowners in 1973, as compared to only 16% in 2013. Beyond the role of macroeconomic and institutional factors (real estate prices, interest rates, term of loans granted, etc.), a decomposition of changes in ownership rates over the period using the Oaxaca-Blinder method highlights the role of changes in family structures (increasing proportion of single-parent families, decline in the share of couples with children in the most modest households) and the sharp decline in small rural home ownership. Family support gift assistance, inheritance and other forms of aid also played an important part in the 2000s: four out of ten recent homeowners benefited from it, two out of ten even receiving direct financial assistance for their purchase. This support increased significantly among wealthier households during the 2000s, contributing to a widening gap with the share of homeowners in the least well off populations.

Keywords: homeownership; real estate wealth; family transfers; gift assistance; Oaxaca decomposition; inequalities (search for similar items in EconPapers)
JEL-codes: D63 D64 J10 R21 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2019
New Economics Papers: this item is included in nep-eur and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Journal Article: Rising inequalities in access to home ownership among young households in France, 1973-2013 (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:711

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