Intergenerational home ownership

This paper studies intergenerational links in home ownership, an increasingly important wealth marker and a measure of economic status in itself. Repeated cross sectional UK data show that home ownership rates have fallen rapidly over time, most markedly amongst younger people in more recent birth cohorts. Evidence from British birth cohorts data supplemented by the Wealth and Assets Survey show a significant rise through time in the intergenerational persistence of home ownership, as home ownership rates shrank disproportionately among those whose parents did not own their own home. Given the close connection between home ownership and wealth, these results on strengthening intergenerational persistence in home ownership are therefore also suggestive of a fall in intergenerational housing wealth mobility over time.

Automated summary

This paper examines the intergenerational links in home ownership, which is an increasingly important wealth indicator and a measure of economic status. The UK data from repeated cross-sectional surveys show a rapid decline in home ownership rates over time, especially among younger individuals in more recent birth cohorts. Evidence from British birth cohorts data and the Wealth and Assets Survey suggests a significant increase in the persistence of home ownership across generations, particularly among those whose parents did not own their own property. These findings indicate a potential decrease in intergenerational housing wealth mobility over time, given the strong association between home ownership and wealth.