Rising House Prices Help Children of Homeowners and Hurt Children of Renters

Economics 

Rising House Prices Help Children of Homeowners and Hurt Children of Renters

A 1-percentage-point increase in local home prices when children are 17 years old results in higher college enrollment rates and 0.9% higher annual income for the children of homeowners and lower enrollment and 1.5% lower income for the children of renters .  

House-price gains when children are teenagers increase homeowners’ housing equity and therefore their ability to invest in their children’s human capital, and better educational opportunities typically translate into higher lifetime earnings, the researchers say.

Courtesy : 

Reasearch by  Daniel Cooper of the Federal Reserve Bank of Boston and María José Luengo-Prado of Northeastern University.