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Cohort insights into recovery of Millennial homeownership after the Great Recession

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  • Myers, Dowell
  • Lee, Hyojung
  • Simmons, Patrick A.

Abstract

Analysis tests the differences between age and cohort rates of homeownership, and evaluates lagged factors that have delayed Millennial home buying following the Great Recession. The first lag is structural: age group rates of homeownership are stock accumulations of home buying in prior years, slowly changing and heavily weighted by past achievement. In contrast, the inflow of homeowners is reflected in cohorts’ annual net increments of homeownership and provides a better measure of current demand. These cohort gains in homeownership rates turned sharply upward after 2012, four years earlier than age group rates finally stabilized. Increases in cohort rates of homeownership are shown to be much more predictive of aggregate home buying in a given period than the slowly-changing, age group (stock) rates.

Suggested Citation

  • Myers, Dowell & Lee, Hyojung & Simmons, Patrick A., 2020. "Cohort insights into recovery of Millennial homeownership after the Great Recession," Journal of Housing Economics, Elsevier, vol. 47(C).
    • Handle: RePEc:eee:jhouse:v:47:y:2020:i:c:s1051137718300445
    DOI: 10.1016/j.jhe.2019.01.004
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    References listed on IDEAS

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    More about this item

    Keywords

    Homeownership; Cohorts; Millennials; Great Recession;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving

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