Homeownership rates, housing policies, and co-residence decisions

  • Homeownership rates differ widely across European countries. We document that part of this variation is driven by differences in the fraction of adults co-residing with their parents. Comparing Germany and Italy, we show that in contrast to homeownership rates per household, homeownership rates per individual are very similar during the first part of the life cycle. To understand these patterns, we build an overlapping-generations model where individuals face uninsurable income risk and make consumption-saving and housing tenure decisions. We embed an explicit intergenerational link between children and parents to capture the three-way trade-off between owning, renting, and co-residing. Calibrating the model to Germany we explore the role of income profiles, housing policies, and the taste for independence and show that a combination of these factors goes a long way in explaining the differential life-cycle patterns of living arrangements between the two countries.

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Metadaten
Author:Nils GrevenbrockORCiDGND, Alexander LudwigORCiDGND, Nawid SiassiORCiDGND
URN:urn:nbn:de:hebis:30:3-772897
DOI:https://doi.org/10.1017/S136510052300038X
ISSN:1469-8056
Parent Title (German):Macroeconomic dynamics
Series (Serial Number):ICIR Working Paper Series (No. 51)
Publisher:Cambridge Univ. Press
Place of publication:Cambridge
Document Type:Article
Language:English
Year of Completion:2023
Year of first Publication:2023
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2024/04/18
Tag:co-residence; homeownership; overlapping generations
Volume:2023
Page Number:24
HeBIS-PPN:51945507X
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License LogoCreative Commons - Namensnennung 4.0