Class differences in homeownership and mortgage debt burden across cohorts: the Israeli case

Raviv, Or Cohen

doi:10.1080/19491247.2021.1930504

Cited by 2 publications

(4 citation statements)

References 63 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The latter provided the foundations for introducing the diversity of institutional arrangements that form distinct housing regimes and shape housing tenure and different levels of mortgage debt burden. Given the institutional changes that have taken place in recent decades, the present-day generation of young adults is facing more barriers in the transition to first-time homeownership than previous generations of young adults in diverse contexts (Cohen Raviv, 2021; Flynn and Schwartz, 2017; Fuller et al, 2020; Ronald, 2018). This in turn increases the dependency of young adults, even when they form their own households, on the resources of their family of origin.…”

Section: Discussionmentioning

confidence: 99%

“…Hence, the bulk of studies show that homeownership is less affordable for the current cohort of young adults as compared to earlier cohorts situated in different social contexts, while those who are able to achieve homeownership face a greater mortgage debt burden (e.g. Breidenbach, 2018;Cohen Raviv, 2021;Flynn and Schwartz, 2017;Ronald, 2018). This economic environment intensifies the dependence of young adults on intergenerational assistance and has triggered a shift toward refamilialization (Flynn, 2020;Flynn and Schwartz, 2017;Isengard et al, 2018;Ronald, 2018).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Homeownership regimes and class inequality among young adults

Raviv

Lewin‐Epstein

2021

International Journal of Comparative Sociology

Self Cite

View full text Add to dashboard Cite

In this study, we merge the literature on homeownership regimes, which focuses to a lesser extent on the consequences of wealth and social inequality, with the literature on wealth and social stratification, which overlooks the importance of homeownership regimes in contributing to those inequalities. Within this framework, we examine to what extent homeownership regimes shape class inequality in homeownership among young adults and the mortgage debt burden that usually accompanies it. We first develop an updated typology of homeownership regimes that incorporates the role of the family via intergenerational wealth transfers (IWT) such as gifts and housing assets. This dimension was theoretically underdeveloped and empirically absent from previous homeownership typologies. Second, we employ this typology to investigate class-based gaps in homeownership and mortgage debt burden within and between homeownership regimes. This is done by pooling data for a total of 20 countries from two sources: the European Union Statistics on Income and Living Conditions (EU-SILC) 2013–2014 (EuroStat) for EU countries, and the Household Expenditure Survey 2012–2013 (CBS) for Israel. Using multivariate modeling, we find that homeownership regimes in which IWT in the form of financial support is common practice increase class inequality in homeownership compared to regimes in which IWT of assets is common practice. Contrary to the literature suggesting that liberal mortgage markets advance inclusion, it appears that in the homeownership regime characterized by the most liberal housing finance system (which includes Northern European countries and the Netherlands), class inequality in mortgaged homeownership is the widest but class inequality in mortgage debt burden is the narrowest. Homeownership regimes characterized by IWT of assets (which include Southern and Central Eastern European countries) reveal the opposite patterns. We discuss the implications of our findings for the literature on homeownership regimes and wealth inequality, with a specific focus on young adults.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Homeownership regimes and class inequality among young adults

Raviv

Lewin‐Epstein

2021

International Journal of Comparative Sociology

Self Cite

View full text Add to dashboard Cite

show abstract

“…Scholars of social and wealth inequality have long stressed the role played by IWT on the household level in securing access to homeownership, as well as that of wealth accumulation in shaping socioeconomic inequality [ 9 , 10 ]. These studies show that IWT promotes future homeownership or increases wealth prospects in a variety of social contexts, such as in neoliberal countries, like the US [ 11 ] and UK [ 12 ] and Israel [ 13 ] but also in more income-egalitarian countries, such as Sweden [ 14 ], Norway [ 15 ], and the Netherlands [ 16 ]. While these studies considerably advanced our understanding about how the association between IWT and homeownership is stratified across classes and distributed across countries, they provide less focus on the institutional structures that mitigate it at the macro level.…”

Section: Introductionmentioning

confidence: 99%

“…Such loans are important drivers of social mobility. Thus, differences in access to mortgages and homeownership are fundamental sources of social inequality [ 13 , 61 ]. Access to mortgages also depends heavily on family resources, since IWT enables young adults to become homeowners’ sooner, make larger down payments, and acquire higher-value property [ 62 ].…”

Section: Introductionmentioning

confidence: 99%

Intergenerational wealth transmission and homeownership in Europe–a comparative perspective

Raviv

Hinz²

2022

PLoS ONE

Self Cite

View full text Add to dashboard Cite

The literature on social and wealth inequality has long acknowledged the importance of intergenerational wealth transmission (IWT) to inequality in homeownership tenure. However, it has paid insufficient attention to the institutional structures that moderate these inequalities. Therefore, in this study, we ask how institutional factors via differential housing finance systems and governmental housing policies, moderate the association between IWT and homeownership tenure. This is done by using the framework of housing regime configurations and mortgage market financialization. To do so, we pooled data for 20 European countries from the European Central Bank’s Household Finance and Consumption Survey (HFCS) for 2010–2017, for household heads aged 25–40. Our main findings show consistent contradiction to the welfare state–homeownership “trade-off” hypothesis: that is, when the rental market is more heavily regulated, it is actually young adults who benefited from IWT or who received higher value of IWT have a higher probability of mortgaged homeownership. Paradoxically, when housing finance institutions are more active and generous, the wealthiest young adults hold an advantage in mortgaged homeownership. Therefore, liberal mortgage markets actually serve to enable wealthier young adults to reproduce and preserve their parental wealth status. Further, when housing prices are less affordable (median mortgage-to-income ratio), those who have received a higher amount of IWT hold an advantage in mortgaged homeownership. We discuss the implications of our findings, which cut across the socioeconomic, spatial, and demographical arenas.

show abstract

Class differences in homeownership and mortgage debt burden across cohorts: the Israeli case

Cited by 2 publications

References 63 publications

Homeownership regimes and class inequality among young adults

Homeownership regimes and class inequality among young adults

Intergenerational wealth transmission and homeownership in Europe–a comparative perspective

Contact Info

Product

Resources

About