The unequal geography of declining young adult homeownership: Divides across age, class, and space

Hochstenbach, Cody; Arundel, Rowan

doi:10.1111/tran.12466

Cited by 16 publications

(4 citation statements)

References 65 publications

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“…Co-residence is therefore an important yet under recognized area where socio-economic and age-based housing inequalities play out, marking another way that young adults’ housing outcomes have come to reflect wider patterns of socio-economic inequalities [ 48 ]. Our findings reiterate those of other studies, which suggest that intra- generational housing divisions are growing alongside intergenerational ones [ 39 , 49 – 51 ].…”

Section: Discussionsupporting

confidence: 91%

Parental co-residence and young adults’ mental health

Howard,

Li,

Bentley

2023

PLoS ONE

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The growing trend towards young adults staying in the parental home has garnered much recent scholarly interest. However, less is known about which young adults are living at home, and the impacts this has over young adults’ lives. Using The Household, Income and Labour Dynamics in Australia (HILDA) dataset, this study examines the profiles of co-residing young adults and how these have changed over the first two decades of the 21st century. It then analyses the associations between co-residence and young adults’ mental health, applying a propensity score modelling approach to determine differences in mental health between young adults living at home and their counterparts living independently. Results indicate that rates of co-residence have increased over the 2000s, most steeply amongst those residing outside of major cities (by 46%), older adults (by 36%), females (by 28%), and low-income groups (by 10%). Findings show a significant negative association between co-residence and mental health (a 4-point difference on the 100-point scale, 95% CI -5.93, -2.14). However, the greatest differential in mental health between co-resident and independent young adults is observed amongst those for whom rates of co-residence have increased most dramatically, i.e., females and older adults (a 6-point difference in mental health) and residents of regional and rural areas (a 5-point difference in mental health). We situate this discussion in the context of intensifying housing market constraints, considering how the transformation of the Australian housing system into a vehicle for wealth accumulation has generated barriers to residential independence.

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Section: Discussionsupporting

confidence: 91%

Parental co-residence and young adults’ mental health

Howard,

Li,

Bentley

2023

PLoS ONE

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“…One could, after all, also argue that only some of the young (such as the less wealthy) have difficulties, or that the decline in ownership of the young is simply (or mainly) due to their (changing) life-course trajectory (such as staying longer in education, postponing childbearing, etc. ; see, e.g., Hochstenbach and Arundel [18] who stated that 'changing life-course trajectories have important implications for residential trajectories'), which would indicate that there is not really a 'problem' with young adults' access to the housing market.…”

Section: Stylized Factmentioning

confidence: 99%

“…Before moving to the actual empirical section of the paper, we review the relevant academic literature-where young adults' (declining access to) homeownership has already received considerable attention. As Hochstenbach and Arundel [18] indicate, most studies analyzing young adults' housing market entry have focused on micro-level determinants or national-level patterns and trends. However, because our sample comprises multiple European countries, in the following paragraph, we highlight studies about young households' position in the housing market that considered more (groups of) European countries as well.…”

Section: Literaturementioning

confidence: 99%

Young Households’ Diminishing Access to Homeownership Attainment in Europe

2023

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This multi-country article focuses particularly on homeownership among the young. After all, relying on European Union Statistics on Income and Living Conditions (EU-SILC) data in twelve European countries, we can see that in contrast to the aggregate homeownership rate of ‘all’ households (i.e., no matter what age the households’ heads are) that has remained relatively stable, the aggregate homeownership rate of young households (with heads aged 0–35 years) has fallen substantially in Europe in recent decades. Multiple analyses and quantitative comparisons confirm the stylized fact that acquiring a home has indeed become a challenge for young adult households (also no matter the income quartile in which they fall); rather than that, however, their lowering homeownership rates are simply due to changing sociodemographic characteristics (such as having children later in life and staying longer in education). Moreover, it is unveiled that young tenants and lower income young households are especially disadvantaged with regard to access to the housing market. Through our actual research, we aim to answer the question: Has the government’s fiscal policy strengthened or weakened the declining trend in young people’s homeownership? After all, some evidence exists of an MID having a perverse effect, i.e., capitalizing on higher housing prices. However, multilevel mixed-effects logistic regressions reveal that the use of a mortgage interest deduction (MID) has had a significant positive effect on young adults’ homeownership probability—with the strongest effect for the highest incomes. We believe that all the above results are—in the first place—relevant for governments that are willing to stimulate homeownership. They indicate that some (additional) policy interventions are indeed needed, next to or instead of granting an MID, and that the focus of housing policy should also (and more) be on tenants and those with lower incomes.

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“…Many advanced economies have been experiencing stagnating or declining ownership rates. The accessibility of homeownership has been in particular decline among young adults and lower-income households (Arundel and Ronald, 2021; Hochstenbach and Arundel, 2021; McKee, 2012) as labour market flexibilisation has made it harder for young adults and low-income workers to have secure permanent employment contracts and stable incomes (Dol and Boumeester, 2018). Even with a sufficiently high income, precarious employment conditions can hamper the ability to obtain a mortgage loan.…”

Section: Owner-occupancy and Young Adults: Increasing Importance Of P...mentioning

confidence: 99%

Gentrifying with family wealth: Parental gifts and neighbourhood sorting among young adult owner-occupants

2023

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This paper assesses the role of parental gifts in neighbourhood sorting among young adult homebuyers. We make use of high-quality individual-level registry data for two large urban metropolitan areas in the Netherlands. While previous studies have shown that young adults receiving gifts purchase more expensive housing, little is known about the role of gifts in where young adults buy. Our study finds that parental gifts flow into the housing market in a spatially-uneven way. Movers supported by substantial parental gifts are more likely to enter owner-occupied housing in high-status and gentrifying urban neighbourhoods compared to movers without gifts. This study shows that this can only partially be explained by household and parental characteristics and by the uneven distribution of housing values. The remaining effect suggests that parental gifts also play a role in trade-offs regarding spatial residential decision-making. The conclusion discusses the ramifications of our findings for debates on (re)production of class and intra-generational inequalities through housing, and provides avenues for further research.

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The unequal geography of declining young adult homeownership: Divides across age, class, and space

Cited by 16 publications

References 65 publications

Parental co-residence and young adults’ mental health

Parental co-residence and young adults’ mental health

Young Households’ Diminishing Access to Homeownership Attainment in Europe

Gentrifying with family wealth: Parental gifts and neighbourhood sorting among young adult owner-occupants

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