Rising Inequalities in Access to Home Ownership among Young Households in France, 1973-2013

38 Pages Posted: 14 Mar 2019

See all articles by Carole Bonnet

Carole Bonnet

National Institute of Demographic Studies (INED)

Bertrand Garbinti

Banque de France

Sebastien Grobon

National Institute of Statistics and Economic Studies (INSEE)

Date Written: March 2019

Abstract

Amongst young households (ages 25 to 44), inequalities in first-time home-ownership and in the amount of acquired real estate assets have increased between the most modest and the most affluent groups over the past forty years. According to Insee’s Housing surveys, 32% of young low-income households were homeowners in 1973, as compared to only 16% in 2013. Beyond the role of macroeconomic and institutional factors (real estate prices, interest rates, term of loans granted, etc.), a decomposition of changes in ownership rates over the period using the “Oaxaca-Blinder” method highlights the role of changes in family structures (increasing proportion of single-parent families, decline in the share of couples with children in the most modest households) and the sharp decline in small rural home ownership. Family support – gift assistance, inheritance and other forms of aid – also played an important part in the 2000s: four out of ten recent homeowners benefited from it, two out of ten even receiving direct financial assistance for their purchase. This support increased significantly among wealthier households during the 2000s, contributing to a widening gap with the share of homeowners in the least well‑off populations.

Keywords: homeownership, real estate wealth, family transfers, gift assistance, Oaxaca decomposition, inequalities

JEL Classification: D63; D64; J10; R21

Suggested Citation

Bonnet, Carole and Garbinti, Bertrand and Grobon, Sebastien, Rising Inequalities in Access to Home Ownership among Young Households in France, 1973-2013 (March 2019). Banque de France Working Paper, March 2019, WP 711 , Available at SSRN: https://ssrn.com/abstract=3352361 or http://dx.doi.org/10.2139/ssrn.3352361

Carole Bonnet

National Institute of Demographic Studies (INED) ( email )

133 Bd Davout
Paris cedex 20, France 75980
France

Bertrand Garbinti (Contact Author)

Banque de France ( email )

Paris
France

Sebastien Grobon

National Institute of Statistics and Economic Studies (INSEE) ( email )

18, Boulevard Adolphe-Pinard
92244 Malakoff Cedex
France

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