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Housing Transitions and Parental Background: A Comparative Analysis in Britain, Germany, and Australia

This research explores the influence of parental background on the timing and housing outcomes of young adults leaving the parental home in Britain, Germany, and Australia. It examines the impact of macro-level factors, such as housing market characteristics and welfare systems, on housing transitions and discusses housing wealth as an aspect of social stratification processes. The study uses longitudinal data from BHPS/UKHLS (UK), SOEP (Germany), and HILDA (Australia) from 2001 to 2014.

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Housing Transitions and Parental Background: A Comparative Analysis in Britain, Germany, and Australia

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  1. A longitudinal analysis of leaving home and entering the housing system in Britain, Germany and Australia Sait Bayrakdar, Philipp Lersch, Sergi Vidal & Rory Coulter ISA RC28 Spring Meeting, University of Cologne, 31/03/2017

  2. Relevance • Housing outcomes as an important step of the transition to independent living for young adults • An important indicator of later life-outcomes • A significant factor influencing other life-course decisions such as partnership and fertility • An aspect of intergenerational transmission of disadvantage.

  3. Relevance • Recent changes to impact outcomes of millennials • Changes to housing market • Global Financial Crisis • Changes to life course events

  4. Background • Housing outcomes and home-leaving of young adults shaped by • individual characteristics and socio-economic position (Iacovou, 2010, Stone et al 2011; 2014) • Life events (Thomas and Mulder 2016, Stone et al, 2014) • high levels of intergenerational transmission of housing outcomes (Blaauboer, 2010) • macro-contextual characteristics

  5. Background • Contextual factors are expected to affect housing destinations (Mulder et al., 2015, Priemus and Whitehead, 2014, Dewilde, 2017). • Differences in contextual settings are to create different patterns for housing destinations across countries. • Dual vs Unitary markets (financialization) • Tenure composition (provision of social housing) • Welfare and labour market policies

  6. Background

  7. Research question How does parental background influence the timing and housing outcomes of transitions out of the parental home in Britain, Germany and Australia? Aim: • To explore the impact of parental characteristics with a comparative approach to understand the role of macro level factors such as housing market characteristics and welfare systems on housing transitions. • To discuss housing wealth as an important aspect of social stratification processes by illustrating housing outcome with empirical data.

  8. Research question How does parental background influence the timing and housing outcomes of transitions out of the parental home in Britain, Germany and Australia? Focus: • 18-34 year-old individuals living in parental home in Britain, Germany, and Australia • Looking at their personal and parental characteristics, their life events • Interpreting housing tenure outcomes with respect to the contextual differences across three countries

  9. Data • BHPS/UKHLS (UK), SOEP (Germany), HILDA (Australia) • From 2001 to 2014 • Select sample members who were at the parental home at 18-34. • UK: 9,086 (4,947 males, 4,139 females) • DE: 15,220 (8,544 males, 6,676 females) • AU: 10,213 (5,966males, 5,247 females) • Dependent variable: housing destination • Parental home vs transition to: • home ownership, private rental, social rental

  10. Data • Independent variables: • Personal characteristics: sex, age, country of birth, health, own child at home, new-born child, education, income, • Life events: partnership transition, main economic activity transition • Parental background: parental education, parental income, parental tenure, room stress • Other controls: previously left home, region, bhps/ukhls • EHA, multinomial logistic regression

  11. Transition by destination • UK: 4,947 males; 4,139 females DE: 8,544 males; 6,676 females AU: 5,966 males; 5,247 females

  12. UK

  13. Germany

  14. Australia

  15. Trends for socio-economic status

  16. Trends for parental background

  17. Conclusions • Effects of parental background: • Intergenerational continuation of tenure • Parental education and income has impact particularly on early transition to private rental • No significant effect on home ownership (probably partly because of low transition rates) • Country differences on gendered effects: • There are no strong differences in patterns across countries • Parental tenure has an effect for men in UK and for women in Germany on homeownership • Parental education has an effect for women in UK and for men in Australia

  18. Remarks • Three destination models are not relevant to Germany, (and to some extent) to Australia. • Analysis for attrition in UK did not show any strong pattern. • The analysis for those observed first between age 18-21 show similar results (checks for selection).

  19. Acknowledgements Thank you! sb2152@cam.ac.uk This research is supported by an Economic and Social Research Council Future Research Leaders award [ES/L0094981/1]. Additional financial support has been provided by the Isaac Newton Trust.

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