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The Impact Of Financial Help And Gifts On Housing Demand And Cost Burdens

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  • HEATHER M. LUEA

Abstract

Financial transfers are an important source of income for many households and recipients may use these funds to pay for housing services. This paper examines the separate impact of financial help and substantial gifts on both housing demand and housing cost burden. The results indicate receiving gifts has a positive and statistically significant impact on housing demand. Households receiving help or gifts have substantially higher housing cost burdens, all else being held constant. These findings have implications for the financial well‐being of recipient households and ultimately, the mortgage industry. (JEL R20, R21)

Suggested Citation

  • Heather M. Luea, 2008. "The Impact Of Financial Help And Gifts On Housing Demand And Cost Burdens," Contemporary Economic Policy, Western Economic Association International, vol. 26(3), pages 420-432, July.
    • Handle: RePEc:bla:coecpo:v:26:y:2008:i:3:p:420-432
    DOI: 10.1111/j.1465-7287.2008.00106.x
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    References listed on IDEAS

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    Cited by:

    1. Brooks, Matthew M, 2019. "Differential Attainment of Affordable Housing among America’s Ethnoracial Groups; 2005-2017," SocArXiv qnvjr, Center for Open Science.
    2. Tracy M. Turner & Marc T. Smith, 2009. "Exits From Homeownership: The Effects Of Race, Ethnicity, And Income," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 1-32, February.
    3. Yukutake, Norifumi & Iwata, Shinichiro & Idee, Takako, 2015. "Strategic interaction between inter vivos gifts and housing acquisition," Journal of the Japanese and International Economies, Elsevier, vol. 35(C), pages 62-77.
    4. Wold, Ella Getz & Aastveit, Knut Are & Brandsaas, Eirik & Juelsrud, Ragnar & Natvik, Gisle, 2024. "The housing channel of intergenerational wealth persistence," CEPR Discussion Papers 18888, C.E.P.R. Discussion Papers.
    5. Carole Bonnet & Bertrand Garbinti & Sébastien Grobon, 2018. "Rising inequalities in access to home ownership among young households in France, 1973-2013," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 500-501-5, pages 117-138.
    6. Wouter van Gent & Rik Damhuis & Sako Musterd, 2023. "Gentrifying with family wealth: Parental gifts and neighbourhood sorting among young adult owner-occupants," Urban Studies, Urban Studies Journal Limited, vol. 60(16), pages 3312-3335, December.
    7. Wold, Ella Getz & Aastveit, Knut Are & Brandsaas, Eirik & Juelsrud, Ragnar & Natvik, Gisle, 2024. "The housing channel of intergenerational wealth persistence," CEPR Discussion Papers 18888, C.E.P.R. Discussion Papers.
    8. Turner, Tracy M. & Luea, Heather, 2009. "Homeownership, wealth accumulation and income status," Journal of Housing Economics, Elsevier, vol. 18(2), pages 104-114, June.

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    More about this item

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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