TY  - JOUR
AU  - Haurin,Donald R.
AU  - Hendershott,Patric H.
AU  - Wachter,Susan M.
TI  - Expected Home Ownership and Real Wealth Accumulation of Youth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5629
PY  - 1996
Y2  - June 1996
UR  - http://www.nber.org/papers/w5629
L1  - http://www.nber.org/papers/w5629.pdf
N1  - Author contact info:
Donald R. Haurin
E-Mail: haurin.2@osu.edu

Patric H. Hendershott
Fisher Hall
Ohio State University
2100 Neil Avenue
Columbus, OH 43210
Tel: 218/963-1393
Fax: 218/963-9484
E-Mail: hendershott.2@osu.edu
AB  - This paper describes the real wealth accumulation of American youth and relates this behavior to variations in real constant-quality house prices in their localities of residence.  We argue that increases in the real constant-quality house price have two offsetting effects on wealth.  First, the greater the local constant-quality price of housing, the greater the wealth needed to meet the lender imposed down payment constraint if housing demand is price inelastic.  However, increased real constant-quality house price reduces the likelihood of home ownership and thus the desire the accumulate wealth needed for a down payment.  Using a panel data set for youth age 20-33 for the years 1985 through 1990 we find that the combined direct and indirect impact of variations in real constant-quality house price on wealth is modest for changes near the average real house price, but youths' wealth declines substantially in areas with high real house price.
ER  -