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Homeownership and the Life Cycle: an Ordered Logit Approach

Bart Capéau, André Decoster and Frederic Vermeulen

Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

Abstract: This paper presents an ordered logit approach to model the optimal timing of buying a house in the life cycle. The model is applied to three recent Belgian household budget surveys. We find that households postpone homeownership or choose to be lifelong tenant due to an increase of the transaction tax rate, the real interest rate on mortgages and an indicator for the evolution of real house prices. Expenditures on nondurables, on the contrary, have a positive impact on (early) homeownership.

Keywords: homeownership; life cycle; transaction tax. (search for similar items in EconPapers)
JEL-codes: D12 R21 (search for similar items in EconPapers)
Date: 2003-03
New Economics Papers: this item is included in nep-dcm and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ete:ceswps:ces0308

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