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What Makes a Landlord? Ownership of Real Estate by US Households

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  • Mark Shroder

    (Office of Policy DeveLopment and Research, USDepartment of Housing and Urban Development, Washington, DC 20410-6000, USA, Mark_D._Shroder@HUD.gov)

Abstract

Households supply about three-quarters of US rental housing. The paper examines the real estate investment decision and the proportion of wealth invested in real estate. Hypotheses drawn primarily from the real estate finance literature about the role of wealth, expected inflation, human capital, income tax rates, race, health, risk aversion and inheritance are tested against data from the Health and Retirement Study. Wealth has a powerful non-linear effect on ownership of real estate, but ownership is negatively associated with human capital. Marginal tax rates, race and property gifts affect real estate investment; poor health, risk aversion and expected inflation do not seem to.

Suggested Citation

  • Mark Shroder, 2001. "What Makes a Landlord? Ownership of Real Estate by US Households," Urban Studies, Urban Studies Journal Limited, vol. 38(7), pages 1069-1081, June.
    • Handle: RePEc:sae:urbstu:v:38:y:2001:i:7:p:1069-1081
    DOI: 10.1080/00420980120051657
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    References listed on IDEAS

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    Cited by:

    1. Lucie Schmidt, 2008. "Risk preferences and the timing of marriage and childbearing," Demography, Springer;Population Association of America (PAA), vol. 45(2), pages 439-460, May.
    2. Gavin A. Wood & Rachel Ong, 2013. "When and Why Do Landlords Retain Property Investments?," Urban Studies, Urban Studies Journal Limited, vol. 50(16), pages 3243-3261, December.
    3. Burton, Robert O., Jr. & Rivas, Valerie M. & Hendricks, Nathan P. & Graham, John R. & Schurle, Bryan W., 2006. "Farm Land Ownership as a Source of Retirement Income," 2006 Annual meeting, July 23-26, Long Beach, CA 21393, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Pnina O. Plaut1 & Steven E. Plaut, 2013. "Who Wants to be a Landlord? Factors that Affect the Inclination of Israeli Households to Rent out Property," International Real Estate Review, Global Social Science Institute, vol. 16(1), pages 119-133.
    5. Kenneth Gibb & Christian Nygaard, 2005. "The Impact of Buy to Let Residential Investment on Local Housing Markets: Evidence from Glasgow, Scotland," European Journal of Housing Policy, Taylor and Francis Journals, vol. 5(3), pages 301-326, December.

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