Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322333 
Year of Publication: 
2025
Series/Report no.: 
CBM Working Papers No. WP/2/2025
Publisher: 
Central Bank of Malta, Valletta
Abstract: 
In this paper, we study the role of wealth transfers in shaping homeownership in Malta. Leveraging data from four waves of the Maltese Household Finance and Consumption Survey, we perform a logistic regression to investigate how financial inflows in the form of gifts or inheritances, affect (i) the ability of younger households to acquire property, and (ii) afford higher-value homes. Our findings indicate that young households receiving wealth transfers are 15.1% more likely to be homeowners. Larger inheritances exert a stronger influence, with transfers exceeding €94,604 resulting in the highest effect. Households benefitting from gifts or inheritances can afford properties that are on average 31.7% more expensive. Additionally, a 1.0% increase in the transfer size leads to a 1.0% rise in the property value. This result holds for both young households (likely first-time buyers) and older households who can use the transfer to upgrade their dwelling.
Subjects: 
Private wealth transfer
homeownership
household
JEL: 
D14
D31
G51
D12
Document Type: 
Working Paper

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