Homeownership and Attention to Inflation: Evidence from Information Treatments

Abstract

This paper examines how homeownership status shapes attention to inflation and its impact on durable consumption. Using randomized controlled trials on U.S. households (2021–2023), we document systematic heterogeneity in responses to inflation-related information. Homeowners exhibit greater baseline awareness and update their expectations less than renters. Exploiting exogenous variation in inflation expectations induced by the treatments, we find that homeowners adjust durable spending significantly, whereas renters do not. These results highlight homeownership as a key factor in the formation of inflation expectations and their influence on economic behavior.

Keywords: homeownership, mortgages, inflation expectations, durable consumption

JEL Classification: D12, D84, E21, E31, R21, C93