Younger generations and the lost dream of home ownership

Gonzalo Paz-Pardo

Research Bulletin, 2022, vol. 91

Abstract: Homeownership among younger households has been decreasing in several major advanced economies. In this analysis, I show that increases in labour income inequality and uncertainty are key drivers of this trend. Confronted with high house prices and low, risky incomes, many young households cannot or do not want to risk making such a big, illiquid investment. As a result, they accumulate less wealth. JEL Classification: D31, E21, E24, G11, J31

Keywords: earnings risk; housing demand; intergenerational inequality; life cycle; portfolio choice; savings (search for similar items in EconPapers)
Date: 2022-01
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