Cross-country Differences in Homeownership: A Cultural Phenomenon?

Deutsche Bundesbank Discussion Paper No. 40/2019

62 Pages Posted: 20 Dec 2019

See all articles by Stefanie Huber

Stefanie Huber

University of Amsterdam - CeNDEF

Tobias Schmidt

Deutsche Bundesbank - Research Center

Date Written: September 20, 2019

Abstract

Cross-country differences in homeownership rates are large and persistent over time, with homeownership rates ranging from 40% in Switzerland to 80% in Spain. This paper investigates whether culture is a driving factor of the homeownership decision, and could thus explain part of the cross-country differences in homeownership rates. To isolate the effect of cultural references regarding homeownership from the impact of institutions and economic factors, we investigate the homeownership decisions of second-generation immigrants in the United States between 1994 and 2017. Our findings indicate that cultural preferences for homeownership are persistent, transmitted between generations, and substantially influence the rent-versus-buy decision.

Keywords: Housing decisions, second generationmigrants, epidemological approach

JEL Classification: G40, R21, Z10

Suggested Citation

Huber, Stefanie and Schmidt, Tobias, Cross-country Differences in Homeownership: A Cultural Phenomenon? (September 20, 2019). Deutsche Bundesbank Discussion Paper No. 40/2019. Available at SSRN: https://ssrn.com/abstract=3507642

Stefanie Huber (Contact Author)

University of Amsterdam - CeNDEF ( email )

Roetersstraat 11
Amsterdam, NL-1018WB
Netherlands

Tobias Schmidt

Deutsche Bundesbank - Research Center ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

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