Homeowner Subsidies and Suburban Living: Empirical Evidence from a Subsidy Repeal

Alexander Daminger

FinanzArchiv: Public Finance Analysis, 2023, vol. 79, issue 2, 111-145

Abstract: To show how homeownership subsidies influence the distribution of population across space, I exploit the 2005 repeal of a lump-sum real estate purchase subsidy in Germany. Using administrative data on population in local labor markets and IV-estimations in difference-in-differences and triple differences frameworks, I find that repealing subsidies to homeownership recentralizes regions. The effect is likely driven by families with children and young residents of "building-age" who no longer become homeowners in the periphery. These results help inform our understanding of the spatial impacts of subsidizing homeownership.

Keywords: homeownership; housingsubsidies; residentiallocationchoice; suburbanization (search for similar items in EconPapers)
JEL-codes: H24 H30 H71 R23 R28 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Working Paper: Homeowner Subsidies and Suburban Living: Empirical Evidence from a Subsidy Repeal (2021)
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DOI: 10.1628/fa-2023-0005

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