Why has home ownership fallen among the young?

Jonas Fisher and Martin Gervais

No W09/08, IFS Working Papers from Institute for Fiscal Studies

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.

Keywords: Housing; home ownership; tenure choice; first-time home-buyers; marriage; income risk (search for similar items in EconPapers)
JEL-codes: E0 E2 J1 R21 (search for similar items in EconPapers)
Date: 2009-03-24
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: WHY HAS HOME OWNERSHIP FALLEN AMONG THE YOUNG? (2011)
Working Paper: Why has home ownership fallen among the young? (2009)
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