Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70520
Authors: 
Fisher, Jonas D. M.
Gervais, Martin
Year of Publication: 
2010
Series/Report no.: 
Working Paper, Federal Reserve Bank of Chicago 2009-01
Abstract: 
We document that home ownership of households with 'heads' aged 25-44 years fell substantially between 1980 and 2000 and recovered only partially during the 2001-2005 housing boom. The 1980-2000 decline in young home ownership occurred as improvements in mortgage opportunities seemingly made it easier to purchase a home. This paper uses an equilibrium life-cycle model calibrated to micro and macro evidence to understand why young home ownership fell over a period when it became easier to own a home. A trend toward marrying later mechanically lowers young home ownership after 1980. We show that the large rise in earnings risk which occurred after 1980 can easily account for the remaining decline in young home ownership.
Subjects: 
housing
home ownership
tenure choice
first-time home-buyers
marriage
income risk
JEL: 
E0
E2
J1
R21
Document Type: 
Working Paper

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