The Housing Life-Cycle and the Transition from Renting to Owning a Home in the United States: A Multistate Analysis

Abstract

In this paper the concepts of the housing life-cycle and housing occupancy patterns in the United States are examined. The focus is on the move from renting to owning a home in the young adult years of life. Data from the national American Housing Survey, for the years 1974–1983, are combined with the techniques of multistate demography to produce housing life summary statistics and rates of movement by age. Parameterized curves are fitted to the empirical age-rate schedules and exogenous variables used to explain variation in the parameters related to young adults. Three simple, projection scenarios are also examined. The results indicate the importance of life-cycle factors and economic conditions in the shift from renting to owning a home.