Analysis of the Changing Influences on Traditional Households' Ownership Patterns

J. OF URBAN ECONOMICS, 1996

Posted: 16 May 1998

See all articles by Joseph Gyourko

Joseph Gyourko

University of Pennsylvania - Real Estate Department; National Bureau of Economic Research (NBER)

Peter Linneman

University of Pennsylvania - Real Estate Department

Abstract

Sociological and economic forces have begun to alter ownership patterns in ways not yet captured by movements in the aggregate ownership rate. While demographic factors such as marital status, and family structure remain influential in determining tenure choice, their impact has waned, particularly among the best educated households and those with rising real incomes. Labor market conditions, as evidenced by increasing returns to skill, are more strongly felt than ever before in the housing market. The impact on owning of being highly educated now rivals the influence of being married with minor children. Increasingly delayed ownership is a reality, even for traditional family units with 36-45 year old heads that have not prospered in the labor market. The rising real cost of even relatively inexpensive suburban housing is also beginning to be reflected in a heightened impact for real family income on tenure choice. Finally, race currently is more adversely influential in determining suburban ownership for young, middle-aged minority families than it was in 1960, particularly if the household head is not well educated. We suspect this is due to racially disparate impacts of increasingly rigorous zoning regulations and higher impact fees in the suburbs.

JEL Classification: D10, R21

Suggested Citation

Gyourko, Joseph E. and Linneman, Peter D., Analysis of the Changing Influences on Traditional Households' Ownership Patterns. J. OF URBAN ECONOMICS, 1996. Available at SSRN: https://ssrn.com/abstract=9079

Joseph E. Gyourko (Contact Author)

University of Pennsylvania - Real Estate Department ( email )

Philadelphia, PA 19104-6330
United States
215-898-3003 (Phone)
215-573-2220 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Peter D. Linneman

University of Pennsylvania - Real Estate Department ( email )

Philadelphia, PA 19104-6330
United States

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