Housing and Fertility

Abstract

This paper examines the impact of access to housing on fertility rates using random variation from housing credit lotteries in Brazil. For 20-25-year-olds, we find that obtaining housing increases the average probability of having a child by 32% and the number of children by 33%, with no increase in fertility for people above age 40. The completed lifetime fertility increase for a 20-year-old is twice as large from obtaining housing immediately compared to obtaining it at age 30. Individuals relocate to areas with lower crime rates, higher per capita income, and higher home-ownership rates. The increase in fertility is stronger for households in areas with lower-quality housing and those with lower household income and lower female income share. These results suggest that easing housing credit and housing adequacy constraints can significantly increase fertility.

Keywords: JEL Codes: D14, G23, J62, R20, R23 access to credit, mortgages, housing, fertility, household finance