TY  - UNPD
A1  - Marekwica, Marcel
A1  - Stamos, Michael Z.
T1  - Optimal life cycle portfolio choice with housing market cycles
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2010,21
N2  - During the last decades households in the U.S. have experienced that residential house prices move in a persistent manner, i.e. that returns are positively serially correlated. Since an owner-occupied home is usually the largest investment of a household it is important to understand how households act when they base their consumption and investment decisions on this experience. We show in a setting with housing market cycles and households who can decide whether they rent or own the home, that - besides the consumption and the precautionary savings motive - serial correlation in house prices generates a new speculative motive for homeownership. In particular, we show how good and bad housing market cycles affect homeownership rates, leverage, stock investments and consumption and can explain empirically observed household behavior during housing market boom and bust periods. Keywords: Asset Allocation , Portfolio Choice , Housing Market Cycles , Real Estate JEL Classification: G11, D91
T3  - CFS working paper series - 2010, 21 
KW  - Asset Allocation
KW  - Portfolio Choice
KW  - Housing Market Cycles
KW  - Real Estate
KW  - USA
KW  - Haus
KW  - Preis
Y1  - 2010
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/20475
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-87097
IS  - This version: November 2010
ER  -