Homeownership and Attention to Inflation: Evidence from Information Treatments

Jessica Piccolo and Yuriy Gorodnichenko

No 20087, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper examines how homeownership status shapes attention to inflation and its impact on durable consumption. Using randomized controlled trials on U.S. households (2021–2023), we document systematic heterogeneity in responses to inflation-related information. Homeowners exhibit greater baseline awareness and update their expectations less than renters. Exploiting exogenous variation in inflation expectations induced by the treatments, we find that homeowners adjust durable spending significantly, whereas renters do not. These results highlight homeownership as a key factor in the formation of inflation expectations and their influence on economic behavior.

Keywords: Homeownership; Mortgages; Inflation expectations; Durable consumption (search for similar items in EconPapers)
JEL-codes: C93 D12 D84 E21 E31 R21 (search for similar items in EconPapers)
Date: 2025-03
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Working Paper: Homeownership and Attention to Inflation: Evidence from Information Treatments (2025)
Working Paper: Homeownership and Attention to Inflation: Evidence from Information Treatments (2025)
Working Paper: Homeownership and Attention to Inflation: Evidence from Information Treatments (2025)
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