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2021 Klein Lecture: American Dream Delayed: Shifting Determinants Of Homeownership

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  • Natalia Khorunzhina
  • Robert A. Miller

Abstract

We develop and estimate a dynamic model of female labor supply, fertility, and transition from renting to first homeownership with panel data, to investigate declining U.S. homeownership over the past decades. Higher house prices and increased female wage rates (that is the opportunity cost of leisure) cause households to postpone their first‐home purchase, because leisure and fertility are complementary to homeownership. Education and female workforce participation are reinforcing factors that raise the value of owning a home. Our estimates show the effects of rising house prices and wage rates more than offset the effects of greater education and workforce participation.

Suggested Citation

  • Natalia Khorunzhina & Robert A. Miller, 2022. "2021 Klein Lecture: American Dream Delayed: Shifting Determinants Of Homeownership," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 3-35, February.
    • Handle: RePEc:wly:iecrev:v:63:y:2022:i:1:p:3-35
    DOI: 10.1111/iere.12557
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    References listed on IDEAS

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    2. Michael Warlters, 2023. "Stamp Duty Reform and Home Ownership," The Economic Record, The Economic Society of Australia, vol. 99(327), pages 492-511, December.

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