Home tenure, stock market participation, and composition of the household portfolio

Real estate rental market: a 10-year bibliometric-based review

“…Some scholars discovered that the development of the housing rental market would help to reduce the inequality between income and house prices (Zhang et al, 2016). On the topic of home ownership, some scholars presented that buying or renting, as an investment decision by households, has long-term consequences on their financial well-being (Beaubrun-Diant & Maury, 2016;Crowley & Li, 2016;Tabner, 2016). Each cluster involves citing articles and cited references.…”

Tenure Choice, Portfolio Structure and Long-Term Care - Optimal Risk Management in Retirement

“…Consequently, homeownership seems to reduce the demand for risky financial assets, see Hochguertel and van Soest (2001) for the Netherlands or Yamashita (2003) for the U.S. On the other hand, homeowners are perfectly hedged against rent fluctuations (Sinai and Souleles, 2005) and inflation (Wu and Pandey, 2012) which may in turn encourage their risk taking in financial assets. Not surprisingly, Beaubrun-Diant and Maury (2016) present evidence from the Panel Study of Income Dynamics (PSID) in the U.S. that the fraction of stockholders is significantly higher among homeowners than among renters, while Michielsen et al (2016) find no effect at all of home equity and mortgage debt on the risky asset share of Dutch households. Chetty et al (2017) argue that an increase in home equity due to rising residential prices reduces stockholding, while an increase in home equity due to a reduction in mortgage debt increases stockholding.…”

The importance of debt for household risky asset allocation and portfolio structure

“…Cheung and Miu (2015) demonstrate significant interaction effect between financial assets and home ownership. Beaubrun-Diant and Maury (2016) analyze the simultaneous decisions of the households to participate in the stock market and own their homes. They provide evidence that home-and stock-ownership decisions are taken simultaneously, therefore, rejecting the common view that these decisions are made sequentially.…”