American Dream Delayed: Shifting Determinants of Homeownership

Natalia Khorunzhina, Robert A. Miller*

*Corresponding author for this work

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We develop and estimate a dynamic model of female labor supply, fertility and transition from renting to first homeownership with panel data, to investigate declining U.S. homeownership over the past decades. Higher house prices and increased female wage rates (that is the opportunity cost of leisure), cause households to postpone their first-home purchase, because leisure and fertility are complementary to homeownership. Education and female workforce participation are reinforcing factors that raise the value of owning a home. Our estimates show the effects of rising house prices and wage rates more than offset the effects of greater education and workforce participation
Original languageEnglish
JournalInternational Economic Review
Issue number1
Pages (from-to)3-35
Number of pages33
Publication statusPublished - Feb 2022

Bibliographical note

Published online: 03 December 2021.
Alternative title: 2021 Klein Lecture: American Dream Delayed: Shifting Determinants of Homeownership.


  • Housing demand
  • Fertility
  • Labor supply

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