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Homeownership and Attention to Inflation: Evidence from Information Treatments

Author

Listed:
  • Piccolo, Jessica

    (University of Padova)

  • Gorodnichenko, Yuriy

    (University of California, Berkeley)

Abstract

This paper examines how homeownership status shapes attention to inflation and its impact on durable consumption. Using randomized controlled trials on U.S. households (2021–2023), we document systematic heterogeneity in responses to inflation-related information. Homeowners exhibit greater baseline awareness and update their expectations less than renters. Exploiting exogenous variation in inflation expectations induced by the treatments, we find that homeowners adjust durable spending significantly, whereas renters do not. These results highlight homeownership as a key factor in the formation of inflation expectations and their influence on economic behavior.

Suggested Citation

  • Piccolo, Jessica & Gorodnichenko, Yuriy, 2025. "Homeownership and Attention to Inflation: Evidence from Information Treatments," IZA Discussion Papers 17770, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17770
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    More about this item

    Keywords

    homeownership; mortgages; inflation expectations; durable consumption;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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