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Drivers of Homeownership Rates in Selected OECD Countries


Author Info

  • Dan Andrews
  • Aida Caldera Sánchez


Homeownership rates have increased significantly in many OECD countries over recent decades. Using micro-econometric decomposition techniques, this paper shows that part of this increase can be explained by changes in the characteristics of households, including age, household structure, incomes and education. Nevertheless, a significant portion of the change in homeownership rates remains unexplained by shifts in household characteristics, leaving a potential role for public policy in explaining developments in homeownership rates. Panel estimates suggest that the relaxation of down-payment constraints on mortgage loans has increased homeownership rates among credit-constrained households over recent decades, resulting in a rise in the aggregate homeownership rate that is comparable to the impact of population ageing. In countries where tax relief on mortgage debt financing is generous, however, the expansionary impact of mortgage market innovations on homeownership is smaller. This is consistent with the tendency for such housing tax reliefs to be capitalised into real house prices, which may crowd-out some financially constrained households from homeownership at the margin. The impact of housing policies regulating the functioning of the rental market, such as rent regulation and provisions for tenure security, on tenure choice is also explored. Les déterminants du taux de propriété immobilière dans les pays de l'OCDE Les taux d'accession à la propriété immobilière ont augmenté de façon significative dans de nombreux pays de l'OCDE au cours des dernières décennies. En utilisant des techniques micro-économétriques, cette étude montre qu'une partie de cette augmentation est expliquée par des changements dans les caractéristiques des ménages, y compris l'âge, la structure du ménage, les revenus et l'éducation. Néanmoins, une part importante de la variation des taux d'accession à la propriété ne s’explique pas par des changements dans les caractéristiques du ménage, ce qui laisse un rôle potentiel aux politiques publiques pour expliquer l'évolution des taux d'accession à la propriété. Des estimations de panel suggèrent que l'assouplissement des conditions d’apport pour les prêts hypothécaires a augmenté les taux d’accession à la propriété parmi les ménages en butte à des contraintes de crédits, entraînant un effet sur les taux d' accession à la propriété globale comparable à l'impact du vieillissement de la population. Dans les pays où des allégements d’impôt sur le financement de la dette hypothécaire sont généreux, cependant, l'effet expansionniste des innovations sur le marché hypothécaire sur l'accession à la propriété est moindre. Ceci est cohérent avec la tendance pour ces dégrèvements fiscaux à être capitalisées dans les prix réels des logements, ce qui peut évincer, à la marge, certains ménages en difficulté financièrement à l’accession à la propriété. L'impact des politiques du logement qui régissent le fonctionnement du marché locatif sur le mode d'occupation est également exploré.

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 849.

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Date of creation: 18 Mar 2011
Date of revision:
Handle: RePEc:oec:ecoaaa:849-en

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Keywords: financial regulation; homeownership; taxation; mortgage markets; housing market; marché du crédit hypothécaire; réglementation financière; propriété immobilière; marché du logement; fiscalité;

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Cited by:
  1. Riccardo Calcagno & Maria Cesira Urzi Brancati, 2014. "Do more financially literate households invest less in housing? Evidence from Italy," Economics Bulletin, AccessEcon, vol. 34(1), pages 430-445.
  2. European Commission, 2012. "Tax reforms in EU Member States - Tax policy challenges for economic growth and fiscal sustainability – 2012 Report," Taxation Papers 34, Directorate General Taxation and Customs Union, European Commission.
  3. European Commission, 2013. "Tax reforms in EU Member States - Tax policy challenges for economic growth and fiscal sustainability – 2013 Report," Taxation Papers 38, Directorate General Taxation and Customs Union, European Commission.
  4. Dan Andrews, 2010. "Real House Prices in OECD Countries: The Role of Demand Shocks and Structural and Policy Factors," OECD Economics Department Working Papers 831, OECD Publishing.
  5. Caroline Dewilde, 2011. "GINI DP 18: The interplay between economic inequality trends and housing regime changes in advanced welfare democracies," GINI Discussion Papers 18, AIAS, Amsterdam Institute for Advanced Labour Studies.
  6. Figari, Francesco & Paulus, Alari & Sutherland, Holly & Tsakloglou, Panos & Verbist, Gerlinde & Zantomio, Francesca, 2012. "Taxing home ownership: distributional effects of including net imputed rent in taxable income," EUROMOD Working Papers EM4/12, EUROMOD at the Institute for Social and Economic Research.
  7. European Commission, 2011. "Tax Reforms in EU Member States 2011: tax policy challenges for economic growth and fiscal sustainability," Taxation Papers 28, Directorate General Taxation and Customs Union, European Commission.
  8. Cussen, Mary & O'Leary, Brídín & Smith, Donal, 2012. "The Impact of the Financial Turmoil on Households: A Cross Country Comparison," Quarterly Bulletin Articles, Central Bank of Ireland, pages 78-98, April.
  9. Caroline Dewilde & Bram Lancee, 2012. "GINI DP 32: Income Inequality and Access to Housing in Europe," GINI Discussion Papers 32, AIAS, Amsterdam Institute for Advanced Labour Studies.


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