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Do homeowners save more? – Evidence from the Panel on Household Finances (PHF)

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  • Tobias Schmidt
  • Julia Le Blanc

Abstract

In this paper we analyse the impact of property ownership on the saving behaviour of households. We are particularly interested in investigating whether homeowners save more than renters or not. A related question is whether mortgage payments and other regular savings are substitutes or complements for German households. To answer these questions we use a large cross-sectional dataset on individual households’ finances and employ a matching estimator. We find that households owning property and repaying mortgages do save more than renters, if contractual savings and mortgage payments are summed up. However, the difference between regular savings flows of renters and owners is small and insignificant. Owners do not seem to substitute contractual savings with mortgage payments.

Suggested Citation

  • Tobias Schmidt & Julia Le Blanc, 2017. "Do homeowners save more? – Evidence from the Panel on Household Finances (PHF)," ERES eres2017_110, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2017_110
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    References listed on IDEAS

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    Cited by:

    1. Lerbs, Oliver & Voigtländer, Michael, 2018. "Ist eine makroprudenzielle Regulierung des deutschen Hypothekenmarktes geboten?," ZEW Discussion Papers 17-029, ZEW - Leibniz Centre for European Economic Research, revised 2018.

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    More about this item

    Keywords

    Homeownership; household saving; survey data;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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