Journal Article

Intergenerational Homeownership and Mortgage Distress

Abstract: Rates of US homeownership have declined in the past two decades, and the decline has been especially pronounced for young adults. Motivated by recent research that explores the ways in which personal experiences can affect financial attitudes and beliefs, we explore whether the negative homeownership experiences of parents during the 2008 financial crisis could have caused their children to view homeownership less favorably. We find that parental mortgage distress negatively correlates with the probability that a child will purchase a home, and we explore various channels through which this link may occur.

Keywords: 2008 financial crisis; homeownership;

https://doi.org/10.26509/frbc-ec-202012

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2020-06-18

Volume: 2020

Issue: 12

Pages: 7