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Investment Risk And The Transition Into Homeownership

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  • Tracy M. Turner
  • Daigyo Seo

Abstract

type="main" xml:lang="en"> ABSTRACT This paper investigates the extent to which house–price uncertainty affects the transition of renter households into homeownership. Using a 14-year household panel from the Panel Study of Income Dynamics during the years 1984–1997 and measures of the time-varying risk and return to owner-occupied housing, we estimate a Cox proportional hazard model of the effect of house–price volatility on the transition into homeownership. Results indicate that house–price uncertainty has a negative and dramatic impact on transitions into homeownership. In addition, we find that the low-wealth renters are particularly sensitive to house–price risk.

Suggested Citation

  • Tracy M. Turner & Daigyo Seo, 2007. "Investment Risk And The Transition Into Homeownership," Journal of Regional Science, Wiley Blackwell, vol. 47(2), pages 229-253, May.
    • Handle: RePEc:bla:jregsc:v:47:y:2007:i:2:p:229-253
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    File URL: http://hdl.handle.net/10.1111/j.1467-9787.2007.00507.x
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    4. Adam Eckerd & Andrew Keeler, 2012. "Going green together? Brownfield remediation and environmental justice," Policy Sciences, Springer;Society of Policy Sciences, vol. 45(4), pages 293-314, December.
    5. Dongshin Kim & Youngme Seo & Julia Freybote, 2021. "Urbanity, Financial Crisis and the Timing of Homebuying Decisions by Young Households," The Journal of Real Estate Finance and Economics, Springer, vol. 62(4), pages 481-507, May.
    6. Gu, Yao & Zhu, Xingui, 2024. "Homeownership and household risky asset holdings: Moderating role of social security and the mediating role of subjective well-being," Finance Research Letters, Elsevier, vol. 66(C).
    7. Turner, Tracy M. & Luea, Heather, 2009. "Homeownership, wealth accumulation and income status," Journal of Housing Economics, Elsevier, vol. 18(2), pages 104-114, June.
    8. Mavropoulos, Antonios & Xiong, Qizhou, 2019. "Housing consumption and macroprudential policies in Europe: An ex ante evaluation," IWH Discussion Papers 17/2018, Halle Institute for Economic Research (IWH), revised 2019.

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