March 03, 2014 Monday
Research Finding .
Rising Home Equity Funds a Rising Birth Rate, but Only for Homeowners
Devil in the Detail :
A $10,000 increase in average home prices leads to a 5% increase in fertility rates among homeowners but a 2.4% decrease among nonowners, an effect that is substantially larger than the impact of jobless-rate fluctuations.
Reason ?
When house prices rise, homeowning couples apparently use some of their increased housing wealth to “fund” their childbearing goals.
On the contrary , for nonowners, rising prices are one more barrier to having children.
Research by : Lisa J. Dettling of the U.S. Federal Reserve Board and Melissa S. Kearney of the University of Maryland.
SOURCE: House prices and birth rates: The impact of the real estate market on the decision to have a baby
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