Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316725 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17770
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper examines how homeownership status shapes attention to inflation and its impact on durable consumption. Using randomized controlled trials on U.S. households (2021–2023), we document systematic heterogeneity in responses to inflation-related information. Homeowners exhibit greater baseline awareness and update their expectations less than renters. Exploiting exogenous variation in inflation expectations induced by the treatments, we find that homeowners adjust durable spending significantly, whereas renters do not. These results highlight homeownership as a key factor in the formation of inflation expectations and their influence on economic behavior.
Subjects: 
homeownership
mortgages
inflation expectations
durable consumption
JEL: 
D12
D84
E21
E31
R21
C93
Document Type: 
Working Paper

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