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.