Intergenerational Homeownership — The gap in homeownership over generation and its drivers

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Volume Title

School of Business | Bachelor's thesis

Date

2024

Major/Subject

Mcode

Degree programme

Bachelor’s programme in Economics

Language

en

Pages

26

Series

Abstract

The housing landscape in the U.S. has shifted dramatically in recent years, introducing substantial number of obstacles for younger generations aspiring to home ownership. Research has shown that, contrary to better educational attainment and financial situation, households whose are born recently are not doing as good as their elder counterparts when of the same age, with regard to purchasing residential property. This literature review aims to identify the main drivers of the gap in the housing position among these generations, thereby proposing solutions to alleviate the problem from an economics perspective. Using the United States as case study, I find that the differences can be explained mostly via the incompatibility of earning risks and housing price trends across generations. Additionally, shifts in demographic characteristics also play a role in determining generational variations in housing decision.

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Thesis advisor

Kitti, Mitri

Keywords

home ownership, inter-generational wealth, delayed marriage, earning risk, birth cohorts

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