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Title: Saving up or settling down: Home ownership over the life cycle

Citation Type: Journal Article

Publication Year: 2014

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Abstract: In a Bewley model with endogenous price volatility, home ownership and mobility across locations and jobs, we assess the contribution of financial constraints, housing illiquidities and house price risk to home ownership over the life cycle. The model can explain the rise in home ownership and fall in mobility over the life cycle. While some households rent due to borrowing constraints in the mortgage market, factors that affect propensities to save and move, such as risky house values and transactions costs, are equally important determinants of the ownership rate.

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Authors: Halket, Jonathan; Vasudev, Santhanagopalan

Periodical (Full): Review of Economic Dynamics

Issue: 2

Volume: 17

Pages: 345-366

Data Collections: IPUMS USA

Topics: Housing and Segregation

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