IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v54y2017i14p3360-3379.html
   My bibliography  Save this article

Local house prices, parental background and young adults’ homeownership in England and Wales

Author

Listed:
  • Rory Coulter

Abstract

Financial constraints are thought to be making parental support an increasingly influential factor in the homeownership transitions of young Britons. This could inhibit social mobility, exacerbate the intergenerational transmission of wealth and deepen housing inequality. Although research shows that parental socio-economic advantage is associated with filial homeownership, less is known about whether these relationships are particularly pronounced in expensive housing markets where access to homeownership is often more constrained. This study tests this hypothesis by enriching the Office for National Statistics Longitudinal Study of England and Wales with data on local transactional house prices. Multilevel models indicate that disparities in the odds of homeownership between young adults with more and less socio-economically advantaged parents tend to deepen with increasing house prices. This pattern is most noticeable for women. However, parents and prices only intersect to greatly stratify the probability of homeownership when young adults’ circumstances are otherwise conducive to owning.

Suggested Citation

  • Rory Coulter, 2017. "Local house prices, parental background and young adults’ homeownership in England and Wales," Urban Studies, Urban Studies Journal Limited, vol. 54(14), pages 3360-3379, November.
    • Handle: RePEc:sae:urbstu:v:54:y:2017:i:14:p:3360-3379
    DOI: 10.1177/0042098016668121
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0042098016668121
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0042098016668121?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Clara Mulder & Caroline Dewilde & Mark Duijn & Annika Smits, 2015. "The Association Between Parents’ and Adult Children’s Homeownership: A Comparative Analysis," European Journal of Population, Springer;European Association for Population Studies, vol. 31(5), pages 495-527, December.
    2. Geoffrey Meen, 2013. "Homeownership for Future Generations in the UK," Urban Studies, Urban Studies Journal Limited, vol. 50(4), pages 637-656, March.
    3. Mark Andrew, 2012. "The Changing Route to Owner-occupation: The Impact of Borrowing Constraints on Young Adult Homeownership Transitions in Britain in the 1990s," Urban Studies, Urban Studies Journal Limited, vol. 49(8), pages 1659-1678, June.
    4. Kim McKee, 2012. "Young People, Homeownership and Future Welfare," Housing Studies, Taylor & Francis Journals, vol. 27(6), pages 853-862.
    5. Ermisch, John, 1999. "Prices, Parents, and Young People's Household Formation," Journal of Urban Economics, Elsevier, vol. 45(1), pages 47-71, January.
    6. Di Salvo, Pamela & Ermisch, John, 1997. "Analysis of the Dynamics of Housing Tenure Choice in Britain," Journal of Urban Economics, Elsevier, vol. 42(1), pages 1-17, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eliasson, Kent & Haapanen, Mika & Westerlund, Olle, 2019. "Regional concentration of university graduates: The role of high school grades and parental background," Umeå Economic Studies 966, Umeå University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrew, Mark & Haurin, Donald & Munasib, Abdul, 2006. "Explaining the route to owner-occupation: A transatlantic comparison," Journal of Housing Economics, Elsevier, vol. 15(3), pages 189-216, September.
    2. Bettina Isengard & Ronny König & Marc Szydlik, 2018. "Money or space? Intergenerational transfers in a comparative perspective," Housing Studies, Taylor & Francis Journals, vol. 33(2), pages 178-200, February.
    3. MAZZOTTA, Fernanda & PARISI, Lavinia, 2017. "What are the Role of Economic Factors in Determining Leaving and Returning to the Parental Home in Europe During the Crisis? Technical Details," CELPE Discussion Papers 151, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    4. Mark Andrew, 2004. "A Permanent Change in the Route to Owner Occupation?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(1), pages 24-48, February.
    5. Hyun-Jeong Lee & Yoon-Seo Hwang, 2021. "Housing Cost Burdens and Parental Support for Young Renters in South Korea," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
    6. Cody Hochstenbach, 2018. "Spatializing the intergenerational transmission of inequalities: Parental wealth, residential segregation, and urban inequality," Environment and Planning A, , vol. 50(3), pages 689-708, May.
    7. Yilan Xu, 2020. "Foreclosed American Dream? Parental Foreclosure and Young Adult Children’s Homeownership," Journal of Family and Economic Issues, Springer, vol. 41(3), pages 458-471, September.
    8. Cody Hochstenbach & Willem R Boterman, 2017. "Intergenerational support shaping residential trajectories: Young people leaving home in a gentrifying city," Urban Studies, Urban Studies Journal Limited, vol. 54(2), pages 399-420, February.
    9. Christa Hubers & Caroline Dewilde & Paul M. de Graaf, 2018. "Parental marital dissolution and the intergenerational transmission of homeownership," Housing Studies, Taylor & Francis Journals, vol. 33(2), pages 247-283, February.
    10. Rory Coulter & Michael Thomas, 2019. "A new look at the housing antecedents of separation," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 40(26), pages 725-760.
    11. 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.
    12. Francesca Modena & Concetta Rondinelli, 2011. "Leaving home and housing prices. The experience of Italian youth emancipation," Department of Economics Working Papers 1101, Department of Economics, University of Trento, Italia.
    13. Clara H. Mulder & Michael Wagner, 2001. "The Connections between Family Formation and First-time Home Ownership in the Context of West Germany and the Netherlands," European Journal of Population, Springer;European Association for Population Studies, vol. 17(2), pages 137-164, June.
    14. Pedro Salas-Rojo & Juan Gabriel Rodríguez, 2022. "Inheritances and wealth inequality: a machine learning approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(1), pages 27-51, March.
    15. Nicoletta Balbo & Francesco C. Billari & Melinda Mills, 2013. "Fertility in Advanced Societies: A Review of Research," European Journal of Population, Springer;European Association for Population Studies, vol. 29(1), pages 1-38, February.
    16. James Banks & Richard Blundell & James P. Smith, 2002. "Wealth Portfolios in the UK and the US," NBER Working Papers 9128, National Bureau of Economic Research, Inc.
    17. Donald R. Haurin & Stuart S. Rosenthal, 2007. "The Influence of Household Formation on Homeownership Rates Across Time and Race," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 35(4), pages 411-450, December.
    18. Laura Cavalli & Alessandro Bucciol & Paolo Pertile & Veronica Polin & Nicola Sartor & Alessandro Sommacal, 2012. "Modelling life-course decisions for the analysis of interpersonal and intrapersonal redistribution," Working Papers 25/2012, University of Verona, Department of Economics.
    19. Effrosyni Adamopoulou & Ezgi Kaya, 2018. "Young Adults Living with their Parents and the Influence of Peers," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(3), pages 689-713, June.
    20. Cindy Biesenbeek & Mauro Mastrogiacomo & Rob Alessie & Jakob de Haan, 2022. "The effect of introducing a Loan-to-Value limit on home ownership," Working Papers 741, DNB.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:54:y:2017:i:14:p:3360-3379. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.