Research Report Intergenerational Homeownership
The Impact of Parental Homeownership and Wealth on Young Adults’ Tenure Choices
Jung Hyun Choi, Jun Zhu, Laurie Goodman
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This study examines how parents’ homeownership and wealth influence young adults’ (ages 18 to 34) tenure choices. We show that the children of homeowners are 7 to 8 percentage points more likely to be homeowners than the children of renters, all else being equal. Additionally, a 10 percent increase in parental wealth increases a young adults’ likelihood of owning a home by 0.15 to 0.20 percentage points. The difference in parental homeownership and wealth explains 12 to 13 percent of the homeownership gap between black and white young adults. We also show that the stability of parents’ homeownership and the amount of wealth they possess also affect their child’s likelihood of owning a home.
Research Areas Wealth and financial well-being Race and equity Housing finance
Tags Asset and debts Racial and ethnic disparities Housing and the economy Homeownership Inequality and mobility Racial homeownership gap
Policy Centers Housing Finance Policy Center