American Dream Delayed: Shifting Determinants of Homeownership

47 Pages Posted: 7 Jul 2019

See all articles by Natalia Khorunzhina

Natalia Khorunzhina

Copenhagen Business School - Faculty of Economics and Business Administration

Robert Miller

Carnegie Mellon University - David A. Tepper School of Business

Date Written: July 3, 2019

Abstract

This paper develops and estimates a dynamic model of discrete choice for labor supply, fertility and transition from tenant to homeowner, to investigate the secular decline in homeownership over the past several decades, wholly attributable to households postponing the purchase of their first home. House prices only partly explain the decline; higher base level wages led to lower fertility also contributing to the decline, because households with children are more likely to own a home than those without. Somewhat surprisingly we find higher levels of female education ameliorated this trend, highly educated women placing greater value on homeownership.

Keywords: Housing Demand, Fertility, Labor Supply

JEL Classification: R21, J13, J22, D14, D91

Suggested Citation

Khorunzhina, Natalia and Miller, Robert, American Dream Delayed: Shifting Determinants of Homeownership (July 3, 2019). Available at SSRN: https://ssrn.com/abstract=3414380 or http://dx.doi.org/10.2139/ssrn.3414380

Natalia Khorunzhina (Contact Author)

Copenhagen Business School - Faculty of Economics and Business Administration ( email )

Frederiksberg, DK - 2000
Denmark

HOME PAGE: http://sf.cbs.dk/nk

Robert Miller

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

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