Abstract
This paper examines the responsiveness of renters′ decisions to save for home purchase to house prices. I use membership in a tax-deferred savings program for prospective first-time home buyers in Canada to identify renter households who are saving for a down payment. I find that high house prices substantially reduce the probability of households saving for a down payment: a $4000 increase in house prices decreases the probability of saving for a down payment by one percentage point. In addition, households saving for home purchase have $300 less in accumulated assets for every $1000 higher increment to house prices.
Original language | English (US) |
---|---|
Pages (from-to) | 209-237 |
Number of pages | 29 |
Journal | Journal of Urban Economics |
Volume | 36 |
Issue number | 2 |
DOIs | |
State | Published - Jan 1 1994 |
Externally published | Yes |
ASJC Scopus subject areas
- Economics and Econometrics
- Urban Studies