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Intergenerational Transmission: How Strong Is the Effect of Parental Homeownership? Results of a Survey on Households in Austria

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  • Karin Wagner

    (Oesterreichische Nationalbank, Economic Analysis Division)

Abstract

Against the background of decreasing housing subsidies and rising housing prices, this paper contributes to the analysis of various influences that determine whether a household is a housing owner or tenant (tenure status). The study applies a logistic regression to data for Austria from the Household Finance and Consumption Survey (HFCS). In particular, the study investigates the extent to which parental homeownership influences the tenure choice of young adults. The results show that the probability of becoming a homeowner increases significantly, by 31 percentage points, for a household with homeowning parents. Gifts and inheritances appear to be important mechanisms underlying the intergenerational transmission of homeownership in Austria. Furthermore, households become homeowners earlier in their life cycle if their parents are or were homeowners. The strong effect of parental ownership on the ability to afford ownership and the distinct importance of inheritances and gifts are among the factors responsible for housing wealth disparity.

Suggested Citation

  • Karin Wagner, 2014. "Intergenerational Transmission: How Strong Is the Effect of Parental Homeownership? Results of a Survey on Households in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 49-64.
    • Handle: RePEc:onb:oenbmp:y:2014:i:2:b:3
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    File URL: https://www.oenb.at/dam/jcr:2e712520-779b-48b4-881b-0b84244fc92b/mop_2014_q2_analyse3.pdf
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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