Quantifying the Decision to Become a First-Time Home Buyer

Dados Bibliográficos

ID10859080
AutoresRichard L Cooperstein (United States Office of Management & Budget, New Executive Office Building, Rm. 9002, Washington, DC 2053, USA, autor correspondente)
Ano1989
Volume26
Fascículo2
Páginas223-233
Data de publicação1989-04-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoUrban Studies (JOURNAL)
Identificadores do periódicoISSN: 0042-0980 • E-ISSN: 1360-063X
EditoraSAGE Publications (PUBLISHER • US)
DOI10.1080/00420988920080191
OpenAlexW1988731731
IdiomaEN
Citações recebidas5
Referências citadas12

Becoming a first-time homebuyer is quantified in two stages using household data. A renter demand curve is estimated to calculate the consumer surplus gain from moving into housing consumption equilibrium. Probit is used to estimate the probability of becoming a first-time homebuyer. The model suggests that overcoming the transactions cost of buying, and the gain from housing consumption equilibrium are important to the decision. Renting is explained by current housing demand through income and family size. Buying for the first time is explained by factors which reduce transactions costs, such as assets, marital status, and education. Disequilibrium in rental housing consumption is also important. The results further suggest that permanent income is not important to the decision

Business · Consumption (sociology · Disequilibrium · Econometrics · Economics · Labour economics · Marital status · Microeconomics · Probit · Probit model · Renting · Housing Market and Economics · Housing, Finance, and Neoliberalism · Urban, Neighborhood, and Segregation Studies