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The Life Stages and Housing Decisions of Young Households: An Insider Perspective

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  • Diana Ka-Yan Mok

    (Department of Geography, McGill University, 805 Sherbrooke Street West, Montreal, Quebec, H3A 2K6, Canada)

Abstract

Conventional housing studies often model a household's housing demand and tenure choice as a joint decision; life stages are ‘taste’ variables that shift the housing demand function. In this study, as in conventional ones, I treat housing demand and tenure choice as a joint decision. Unlike in conventional studies, however, I argue that some life stages are endogenous and that an individual chooses to opt in or out of some of these stages—to stay single or form a couple, or to raise children. These decisions are correlated with tenure choice and housing demand. I use the census microdata file and set up a system of nine equations: six regimes of housing demand, an equation to explain tenure choice, and two equations to describe life-stage decisions. The result shows that housing consumption is less sensitive to permanent income once the endogeneity of life stages has been accounted for—that is, part of the income effect on housing consumption is due to life-stage decisions.

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  • Diana Ka-Yan Mok, 2005. "The Life Stages and Housing Decisions of Young Households: An Insider Perspective," Environment and Planning A, , vol. 37(12), pages 2121-2146, December.
    • Handle: RePEc:sae:envira:v:37:y:2005:i:12:p:2121-2146
    DOI: 10.1068/a3757
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    References listed on IDEAS

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    Cited by:

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    2. Pei-Syuan Lin, 2023. "The Influence of Non-Spousal Owned Housing on Marital Power and Marital Satisfaction: Gender Differences in Taiwan," International Real Estate Review, Global Social Science Institute, vol. 26(3), pages 299-341.

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