The Two Dimensions of Housing Inequality in Europe<br>Are High Home Ownership Rates an Indicator of Low Housing Values?<br>

Abstract

Exploring inequalities in home ownership as an important component of household wealth contributes to the understanding of social stratification in modern societies. We argue that inequalities in housing are not only manifested by differential access to home ownership, but also by differences in housing values, a somewhat neglected aspect in research hitherto. Applying data from the “Survey of Health, Ageing and Retirement in Europe” (SHARE), we compare home ownership rates and housing values between 13 European countries. Our results suggest that housing inequality is indeed a two-dimensional phenomenon. Most surprisingly, migration status has a negative impact on the probability of home ownership in European countries, but not on the mean housing value. In addition, we exploratively study the relationship between these two dimensions of housing inequality. Our analyses show a negative though not significant relationship between home ownership rates and housing values.

National patterns of income and wealth inequality

“…Among the different types of wealth, owner-occupied housing is of particular importance as it is the quantitatively most important component of household wealth in most countries in our analysis (cf. Kolb et al, 2013). Moreover, housing wealth was found to have an equalizing effect on wealth inequality in these countries (Skopek et al, 2012).…”

Rent price control – yet another great equalizer of economic inequalities? Evidence from a century of historical data

“…On the household expenditure side, it can also affect disposable income as it became the largest expenditure item during the 20th century, moving ahead of food (Reckendrees, 2007). With regard to wealth, housing is the largest wealth component in most households' wealth portfolios and house price changes can substantially alter its size (Christelis, Georgarakos, & Haliassos, 2013;Kolb, Skopek, & Blossfeld, 2013).…”

“…First, housing can act as an income stream by generating rental income and capital gains. It is also the largest component in most households’ wealth portfolios, and house price changes can substantially alter its size (Christelis et al, 2013; Fuller et al, 2020; Kolb et al, 2013). Second, as it became the largest household expenditure item during the 20th century, moving ahead of food (Reckendrees, 2007), housing also affects disposable income.…”

More Mortgages, More Homes? The Effect of Housing Financialization on Homeownership in Historical Perspective

“…36 The homeownership rate alone, however, hides possible redistribution effects due to unequally growing house prices. 37 In general, the literature explaining homeownership is rich in institutionally dense case studies, on the one hand, and cross-sectional data sets on the other. Larger country samples and particularly the long-view perspective, however, are absent, with the exception of spot comparisons of the Great Depression and Recession.…”