Borrowing Constraints, Home Ownership and Housing Choice: Evidence from Intra‐Family Wealth Transfers

Item Type Journal paper
Abstract We study the impact of borrowing constraints on home ownership and housing demand by comparing the tenure choice and housing quality of consumers who receive intra‐family wealth transfers to those that do not. Our analysis is based on household‐level panel data providing information on the receipt of wealth transfers, changes in tenure status as well as changes in the size and quality of housing. On average we find that the receipt of a wealth transfer increases the propensity of consumers to transition from renters to home‐owners by 6–8 percentage points (35% of the sample mean). Additional analyses suggest that this effect is unlikely to be driven by wealth effects and can thus be attributed to the relaxation of borrowing constraints. By contrast, wealth transfers do not increase the likelihood that existing homeowners “trade‐up” to larger homes in better locations.
Authors Blickle, Kristian & Brown, Martin
Journal or Publication Title Journal of Money, Credit and Banking
Language English
Keywords Borrowing constraints, wealth transfers, home ownership,macroprudential policy.
Subjects business studies
HSG Classification contribution to scientific community
HSG Profile Area SOF - System-wide Risk in the Financial System
Refereed Yes
Date March 2019
Publisher Wiley Periodicals, Inc.
Place of Publication Ohio State University
Volume Vol. 51, Nos. 2-3,
Page Range 539-580
Number of Pages 42
Publisher DOI
Official URL
Contact Email Address
Depositing User Beatrix Kobelt-Glock
Date Deposited 29 Jun 2016 10:57
Last Modified 20 Jul 2022 17:28


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Blickle, Kristian & Brown, Martin (2019) Borrowing Constraints, Home Ownership and Housing Choice: Evidence from Intra‐Family Wealth Transfers. Journal of Money, Credit and Banking, Vol. 51, Nos. 2-3, 539-580.

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