Measuring the Benefits of Homeowning: Effects on Children Redux

Title: Measuring the Benefits of Homeowning: Effects on Children Redux

Date: 10/22/2012

Author(s): Richard Green, Gary Painter and Michelle White

Executive Summary:

Fifteen years ago, Green and White (1997) published a paper in the Journal of Urban Economics that found that children of homeowners were more likely to stay in school and less likely to have children of their own by age 17 than children of renters. We also found that longer tenure mitigates the adverse effect of renting, so that children of renters are more likely to stay in school if their families have lived in the same rental unit longer. Thus owning may produce better outcomes for children than renting in part because owners generally move less frequently than renters. Haurin, Parcel and Haurin (2002) reach a similar conclusion. Other studies, such as those by Aaronson (2000) and Barker and Miller (2009), argue that it is wealth accumulation by families that affects whether their children succeed, rather than whether families own versus rent.