Generational variations in the timing of entry into homeownership in Shanghai: The role of family formation and family of origin

Abstract

Radical housing reform has triggered tremendous changes in both housing supply and housing demand in China over the past four decades, leading to apparent generational fractures in homeownership. In contrast to the rising age of first dwelling purchasers in some Western countries, younger cohorts in China are entering homeownership at increasingly younger ages despite rising housing prices. Based on a retrospective survey conducted in Shanghai in 2018 and 2019, this study examines the changing roles of family formation and parental background in affecting the timing of entering homeownership across different cohorts. Employing event history analyses, this study demonstrates that transitions to first homeownership have become synchronised with family formation among younger cohorts, which implies the social norm of ‘marital home’. Furthermore, the results reveal that parental background is increasingly influential in determining the timing of first home purchase; men and individuals from one-child families are more likely to be the beneficiary of parental help to enter homeownership. Through the lens of cohort, this study contributes to understanding the changing role of family formation and family of origin, which are shaped by institutional and cultural transformations in China. The intensified intergenerational transmission leads to exacerbation of horizontal housing inequality, that is, some achieving homeownership at a younger age while others being shunned from homeownership in the context of worsening housing affordability.

Migration up and down the urban hierarchy: The mediating effects of geographic mobility on migrants' homeownership

“…Wu & Zhang, 2018). One line of research adopts the life-course perspective, which highlights the role of individual factors and reveals that older age, higher levels of education and marriage encourage homeownership (C. Cui et al, 2016;Fang & Zhang, 2016;Mu, Cui, et al, 2022;Tao et al, 2015). Moreover, family characteristics have been identified as major determinants of migrants' homeownership.…”

“…In contrast to Western literature focusing on international migrants and their homeownership, studies on migrants' homeownership in China have centred on internal migrants from rural to urban areas, and increasingly from small‐and middle‐sized cities to big cities (Niu & Zhao, 2018; Tang et al, 2017; L. Wu & Zhang, 2018). One line of research adopts the life‐course perspective, which highlights the role of individual factors and reveals that older age, higher levels of education and marriage encourage homeownership (C. Cui et al, 2016; Fang & Zhang, 2016; Mu, Cui, et al, 2022; Tao et al, 2015). Moreover, family characteristics have been identified as major determinants of migrants' homeownership.…”

Renting vs. Owning: Public Stereotypes of Housing Consumption Decision From the Perspective of Confucian Culture: Evidence From Event-Related Potentials

“…In the context of Chinese culture, Mu et al (2021) believe that with the deepening of marketization in China, the economic and cultural importance of housing ownership has increased, and the desire of young people to own housing has also increased. Huang et al (2020) explores the causes of high homeownership in China from a cultural perspective and constructs an empirical model to show that cultural traditions stemming from patrilineal marriage and the cultural perception of homeownership as a status symbol drive the high homeownership rate of Chinese residents.…”