American Dream Delayed: Shifting Determinants of Homeownership

Natalia Khorunzhina, Robert A. Miller*

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review


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
Number of pages33
Publication statusPublished - 3 Dec 2021

Bibliographical note

Epub ahead of print. Published online: 03 December 2021.


  • Housing demand
  • Fertility
  • Labor supply

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