The Effects of Homeownership on Wealth Distribution
Within the broader context of new dimensions of poverty such as housing poverty, energy poverty, etc., this article describes dependencies between household income, real estate ownership and socio-economic trends. We argue that income is not the principal determinant for home ownership rate, but rat...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Academy of Economic Studies (ASE)
2022-06-01
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| Series: | European Journal of Interdisciplinary Studies |
| Subjects: | |
| Online Access: | https://ejist.ro/files/pdf/482.pdf |
| _version_ | 1797404068780441600 |
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| author | Klára ČERMÁKOVÁ Eduard HROMADA Eduardo Aguiar Henrique FILHO Tomáš KRULICKÝ |
| author_facet | Klára ČERMÁKOVÁ Eduard HROMADA Eduardo Aguiar Henrique FILHO Tomáš KRULICKÝ |
| author_sort | Klára ČERMÁKOVÁ |
| collection | DOAJ |
| description | Within the broader context of new dimensions of poverty such as housing poverty, energy poverty, etc., this article describes dependencies between household income, real estate ownership and socio-economic trends. We argue that income is not the principal determinant for home ownership rate, but rather recent lifestyle changes can better explain the homeownership decreasing trend in developed economies. Job mobility, family formation determinants and demographical trends seem to find well-supported basis in literature and data. Using data for the US states we have proved that the decreasing rate of home ownership may be explained by social aspects of changing lifestyle such as increasing share of population moving from rural areas to cities, age of marriage, divorce rate, career-oriented lifestyle, rather than by the frequently cited price-income ratio. We have also observed a short-term correlation between financing availability and homeownership rate, but we conclude that property prices would adjust to lose monetary policy without any long-term effect on homeownership rate. It results that government or monetary policies aimed to cushion the housing unavailability (recently increasing value of price-income) ratio may distort the housing market. We propose a new insight in the housing availability discussion. |
| first_indexed | 2024-03-09T02:47:44Z |
| format | Article |
| id | doaj.art-bd6ea4eb22484c5cbbd0232fe6871a0f |
| institution | Directory Open Access Journal |
| issn | 2067-3795 |
| language | English |
| last_indexed | 2024-03-09T02:47:44Z |
| publishDate | 2022-06-01 |
| publisher | Academy of Economic Studies (ASE) |
| record_format | Article |
| series | European Journal of Interdisciplinary Studies |
| spelling | doaj.art-bd6ea4eb22484c5cbbd0232fe6871a0f2023-12-05T16:07:31ZengAcademy of Economic Studies (ASE)European Journal of Interdisciplinary Studies2067-37952022-06-01141688610.24818/ejis.2022.05The Effects of Homeownership on Wealth DistributionKlára ČERMÁKOVÁEduard HROMADAEduardo Aguiar Henrique FILHOTomáš KRULICKÝWithin the broader context of new dimensions of poverty such as housing poverty, energy poverty, etc., this article describes dependencies between household income, real estate ownership and socio-economic trends. We argue that income is not the principal determinant for home ownership rate, but rather recent lifestyle changes can better explain the homeownership decreasing trend in developed economies. Job mobility, family formation determinants and demographical trends seem to find well-supported basis in literature and data. Using data for the US states we have proved that the decreasing rate of home ownership may be explained by social aspects of changing lifestyle such as increasing share of population moving from rural areas to cities, age of marriage, divorce rate, career-oriented lifestyle, rather than by the frequently cited price-income ratio. We have also observed a short-term correlation between financing availability and homeownership rate, but we conclude that property prices would adjust to lose monetary policy without any long-term effect on homeownership rate. It results that government or monetary policies aimed to cushion the housing unavailability (recently increasing value of price-income) ratio may distort the housing market. We propose a new insight in the housing availability discussion.https://ejist.ro/files/pdf/482.pdfhome ownershipresidential marketemploymenthousehold income |
| spellingShingle | Klára ČERMÁKOVÁ Eduard HROMADA Eduardo Aguiar Henrique FILHO Tomáš KRULICKÝ The Effects of Homeownership on Wealth Distribution European Journal of Interdisciplinary Studies home ownership residential market employment household income |
| title | The Effects of Homeownership on Wealth Distribution |
| title_full | The Effects of Homeownership on Wealth Distribution |
| title_fullStr | The Effects of Homeownership on Wealth Distribution |
| title_full_unstemmed | The Effects of Homeownership on Wealth Distribution |
| title_short | The Effects of Homeownership on Wealth Distribution |
| title_sort | effects of homeownership on wealth distribution |
| topic | home ownership residential market employment household income |
| url | https://ejist.ro/files/pdf/482.pdf |
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