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Nevertheless, they persist: Cross-Country Differences in Homeownership Behavior

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  • Stefanie Huber

    (University of Amsterdam)

  • Tobias Schmidt

    (Deutsche Bundesbank, Research Department)

Abstract

Cross-country differences in homeownership rates are large and persistent over time, with homeownership rates ranging from 44% in Switzerland to 83% in Spain. This paper inves- tigates whether cultures—defined as behavioral attitudes passed across generations—may value homeownership differently, and could thus be a driving demand factor of the home- ownership decision. To isolate the effect of cultural preferences regarding homeownership from the impact of other economic factors, we investigate second-generation immigrants’ homeownership decisions in the United States between 1994 and 2017. Our findings in- dicate that cultural preferences for homeownership are persistent, transmitted between generations, and substantially influence the rent-versus-buy decision.

Suggested Citation

  • Stefanie Huber & Tobias Schmidt, 2022. "Nevertheless, they persist: Cross-Country Differences in Homeownership Behavior," Tinbergen Institute Discussion Papers 22-009/II, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20220090
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    More about this item

    Keywords

    Housing Markets; Homeownership Rates; Cross-Country Heterogeneity; Cultural Transmission; Household Housing decisions;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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