Nevertheless, They Persist : Cross-Country Differences in Homeownership Behavior

Cross-country differences in homeownership rates are large and persistent over time, with homeownership rates ranging from 44% in Switzerland to 83% in Spain. This paper inves- tigates whether cultures—defined as behavioral attitudes passed across generations—may value homeownership differently, and could thus be a driving demand factor of the home- ownership decision. To isolate the effect of cultural preferences regarding homeownership from the impact of other economic factors, we investigate second-generation immigrants’ homeownership decisions in the United States between 1994 and 2017. Our findings in- dicate that cultural preferences for homeownership are persistent, transmitted between generations, and substantially influence the rent-versus-buy decision