HOMEOWNERSHIP AND HOUSING TRANSITIONS: EXPLAINING THE DEMOGRAPHIC COMPOSITION

• 成果类型: Article
• 署名作者: Ma, Eunseong; Zubairy, Sarah
• 署名单位: Louisiana State University System; Louisiana State University; Texas A&M University System; Texas A&M University College Station
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12493
• 发表日期: 2021
• 页码: 599-638
• 关键词: life-cycle; idiosyncratic risk; home ownership; DYNAMICS; WEALTH; debt

摘要

We document the evolution of homeownership rate across various age groups for the period 1995-2015. We find that variations in the homeownership rates are relatively large for the young, which is mostly driven by renter-to-owner transitions. In order to explain these empirical facts, we consider a life-cycle model featuring housing tenure decisions. Housing is modeled as an indivisible and lumpy investment subject to both loan-to-value (LTV) and debt-to-income (DTI) credit constraints and transaction fees. Our analysis suggests that variations in the DTI limit play a crucial role in accounting for the uneven behavior across age groups.