Family and housing valueDoes the value of housing run in the family?

Annika Smits

Francesca Michielin

Fourth International Conference on

Population Geographies

Hong Kong, July 10-13 2007

1. Introduction

‘Children are similar to their parents’

Social stratification research: Education Income

Housing research: Housing quality (Jenkins & Maynard 1983) Tenure (Henretta 1984)

2. Hypothesis

All else equal, the value of the parents’ house and that of their adult children are positively related

Controls: Characteristics of the parents (income, household

status, tenure, number of children) Individual characteristics (age, gender, income,

household status, having children, migrant status) Log distance to the parents * value of the parents’

house

3. Data (1): source

Social Statistical Database 2003

Register data on the whole Netherlands population (N=16,494,457)

Value of homes registered in euros for 89% (N=14,685,151)

3. Data (2): housing value

WOZ=value of property used for taxes, based on

Type of property Neighborhood Year built Size Price of similar property

WOZ is calculated for ALL property, also rented property

3. Data (3): Selection Persons living in the Netherlands Age 18-55 Housing value of at least one parent Not living in institutions No students Housing values between 10,000 and 1,000,000 euros

N=4,162,281

4. Method

Multivariate Regression Analyses of housing value

Model 1: value of the parents house

Model 2: value of the parents house + characteristics of the parents

Model 3: value of the parents house + characteristics of the parents + characteristics of the child

5. Results (1)

Effect significant at .01 level

B Beta Constant Value parents

109.58 .21

.228

N R2

4162281 0.052

5. Results (2)

Effects significant at .01 level

B Beta Constant Value parents Income parents (ref=low) Missing Negative Medium High Parents homeowner Household status parents (ref=together) Split Widowed Number of siblings

107.73 .22

-24.00 -20.56

-5.23 -15.68

6.35

-6.45 18.26

.35

.244

-.034 -.012 -.032 -.096 .042

-.034 .102 .009

N R2

4162281 0.075

5. Results (3)

Effects significant at .01 level^ = not significant

B Beta Constant Value parents Parents income (ref=low) No Negative Medium High Parents homeowner Parents household status (ref=together) Split Widowed Number of siblings Log distance * value parents Age Age2 Female

20.27 .21

-2.87 2.11

-.0037^

1.32 6.51

-1.21 3.44 -.82

-.0032 2.15

-.0036 10.60

.232

-.004 .001

-.000^

.008

.043

-.006 .019

-.021 -.017 .242

-.032 .070

5. Results (3 continued) B Beta Income (ref=low) Missing Negative Medium High Have child(ren) Missing Household status (ref=married) Single Cohabiting Divorced Widowed Migrant status (ref=nonmigrant) First generation migrant Second generation migrant

5.72

58.78 1.69

23.86 12.96 22.57

-32.91 -13.36 -37.78 -21.56

-15.12 -1.131

.0212 .0642 .0103 .1435 .0841 .0221

-.1579 -.0682 -.1110 -.0206

-.0438 -.0037

N R2

4162281 0,216

Thank you for your attention