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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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    Cited by:

    1. Ha, Sejeong & Hilber, Christian A. L., 2013. "Do long distance moves discourage homeownership? evidence from England," LSE Research Online Documents on Economics 58307, London School of Economics and Political Science, LSE Library.
    2. Tracy M. Turner & Marc T. Smith, 2009. "Exits From Homeownership: The Effects Of Race, Ethnicity, And Income," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 1-32, February.
    3. 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.
    4. Heather M. Luea, 2008. "The Impact Of Financial Help And Gifts On Housing Demand And Cost Burdens," Contemporary Economic Policy, Western Economic Association International, vol. 26(3), pages 420-432, July.
    5. Mavropoulos, Antonios & Xiong, Qizhou, 2018. "Housing consumption and macroprudential policies in Europe: An ex ante evaluation," IWH Discussion Papers 17/2018, Halle Institute for Economic Research (IWH).
    6. Turner, Tracy M. & Luea, Heather, 2009. "Homeownership, wealth accumulation and income status," Journal of Housing Economics, Elsevier, vol. 18(2), pages 104-114, June.

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