Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2022-01-28
Number: 22-009/II
Author-Name: Stefanie Huber
Author-Workplace-Name: University of Amsterdam
Author-Name: Tobias Schmidt
Author-Workplace-Name: Deutsche Bundesbank, Research Department
Title: Nevertheless, they persist: Cross-Country Differences in Homeownership Behavior
Abstract: Cross-country differences in homeownership rates are large and persistent over time, with homeownership rates ranging from 44% in Switzerland to 83% in Spain. This paper inves- tigates whether cultures—defined as behavioral attitudes passed across generations—may value homeownership differently, and could thus be a driving demand factor of the home- ownership decision. To isolate the effect of cultural preferences regarding homeownership from the impact of other economic factors, we investigate second-generation immigrants’ homeownership decisions in the United States between 1994 and 2017. Our findings in- dicate that cultural preferences for homeownership are persistent, transmitted between generations, and substantially influence the rent-versus-buy decision.
Classification-JEL: G11, G40, R21, Z10.
Keywords: Housing Markets, Homeownership Rates, Cross-Country Heterogeneity, Cultural Transmission, Household Housing decisions
File-URL: https://papers.tinbergen.nl/22009.pdf
File-Format: application/pdf
File-Size: 1,705,489 bytes
Handle: RePEc:tin:wpaper:20220090