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wp0908.pdf
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<p><p>We document that home ownership of households with 'heads' aged 25-44 years fell substantially between 1980 and 2000 and recovered only partially during the 2001-2005 housing boom. The 1980-2000 decline in young home ownership occurred as improvements in mortgage opportunities made it easier to purchase a home. This paper uses an equilibrium life-cycle model calibrated to micro and macro evidence to understand why young home ownership fell over a period when it became easier to own a home. Our findings indicate that a trend toward marrying later and the increase in household earnings risk that occurred after 1980 account for 3/5 to 4/5 of the decline in young home ownership.</p></p>
Authors
![Martin Gervais](/sites/default/files/styles/square_desktop/public/2022-07/Martin%20Gervais.jpg?itok=pc8EXyI0)
Research Associate University of Georgia
Martin is an IFS Research Associate and an Alumni Board Distinguished Professor in the Department of Economics at the University of Georgia.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Jonas D. M. Fisher
Working Paper details
- DOI
- 10.1920/wp.ifs.2009.0908
- Publisher
- IFS
Suggested citation
Fisher, J and Gervais, M. (2009). Why has home ownership fallen among the young?. London: IFS. Available at: https://ifs.org.uk/publications/why-has-home-ownership-fallen-among-young (accessed: 3 July 2024).
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