The Long-Run Effects of Parental Homeownership and Housing Quality on Later Life Outcomes
August 2026
Working Paper Number:
CES-26-54
Abstract
We measure the effects of housing quality and living in renter- versus owner-occupied housing as a child on later life outcomes. Homeownership is the primary source of most US households' wealth, and homeownership and housing quality potentially have large impacts on children, yet we know relatively little about any long-term effects. Ownership and housing quality are correlated with income, neighborhood characteristics, and many other socioeconomic characteristics, making causal estimation difficult. Using the US Census Bureau's data linkage infrastructure, we create a new data linkage between the American Housing Survey (1995-2002) and administrative tax data (2016-2019), to investigate adult outcomes such as earnings and having a mortgage or owning a home, while comprehensively controlling for a wide variety of variables, including housing quality. We find strong positive correlations with growing up in a parent-owned home, approximately $2,000 higher incomes and a 6 percentage point increased likelihood of ownership. However, we find no evidence of causal effects: unobservables that are significantly less correlated with outcome and treatment than observables would drive the coefficients of interest to zero, and family fixed effects models that compare siblings to each other show no effect of years of childhood spent in an owned home or being born into an owned home.
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:
state,
housing,
residential,
socioeconomic,
neighborhood,
home,
intergenerational,
family,
residence,
apartment,
house,
rent,
renter,
homeowner,
housing survey,
income households,
mortgage,
owning
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Master Address File,
Census Bureau Disclosure Review Board,
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Limited Liability Company,
Person Validation System,
Adjusted Gross Income
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