Housing wealth across countries: The role of expectations, institutions, and preferences
Business
Homeownership rates and housing wealth differ immensely across countries. Using a life-cycle model with housing wealth estimated on micro data from five large economies, this column provides a decomposition of the drivers of long-run, structural differences in housing wealth. It finds that expectations of house prices, the institutional setup of the housing market, and household preferences all matter, although preferences contribute less. Differences in homeownership rates are strongly
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