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Federal Reserve Bank of St. Louis
Working Papers
The Postwar Conquest of the Home Ownership Dream
Matthew Chambers
Carlos Garriga
Don E. Schlagenhauf
Abstract

Post-World War II witnessed the largest housing boom in recent history. This paper develops a quantitative equilibrium model of tenure choice to analyze the key determinants in the co-movement between home-ownership and house prices over the period 1940-1960. The parameterized model matches key features and is capable of accounting for the observed housing boom. The key driver in understanding this boom is an asymmetric productivity change that favors the goods sector relative to the construction sector. Other factors such as demographics, income risk, and government policy are important determinants of the homeownership rate but have small effect on house prices.


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Matthew Chambers & Carlos Garriga & Don E. Schlagenhauf, The Postwar Conquest of the Home Ownership Dream, Federal Reserve Bank of St. Louis, Working Papers 2016-7, 12 Apr 2016.
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Keywords: Housing finance; first-time buyers; life-cycle
DOI: 10.20955/wp.2016.007
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