Do children increase the likelihood of homeownership? Evidence from a sample with twins

Abstract

Homeownership status has a broad range of positive outcomes that accrue to both individuals and society. Although the determinants of homeownership have been studied in the past, there was little attention to the effect of family size. Using a twin birth as an exogenous change in the number of children, we examine the effect of increasing family size on the likelihood of owning a house. We found that having an additional child after the first birth increases the likelihood of homeownership approximately by 4.3%, but the impact faded out in subsequent births. In addition, family size is more likely to increase homeownership for less educated households and those who had first births at older ages.