Determinants of homeownership in Europe – an empirical analysis based on SHARE

Abstract

PurposeThe purpose of this paper is to explore the determinants of homeownership in Europe.Design/methodology/approachIn this study, a logit model that predicts whether an individual is a homeowner or not was estimated. Wave 6 (2015) from the Survey of Health, Ageing and Retirement in Europe was used, through a sample of 46,003 respondents across all Europe and through four subsamples (Eastern, Southern, Northern and Western Europe).FindingsThe findings reveal that several factors influence homeownership, namely, geographic location, age, gender, number of children, marital status, job situation, household income, high education, years of education, political orientation and holding bonds, stocks, mutual funds, bank accounts, saving accounts, individual retirement account or life insurance. Different results were obtained when the four subsamples were considered.Research limitations/implicationsThe research findings provide an attempt to disentangle the main factors influencing homeownership. However, only individuals above 50 years of age were considered because of the database characteristics.Practical implicationsThis paper provided insights to consider public policies that try to increase homeownership rates.Social implicationsThe results put in evidence the likelihood characteristics of a homeowner. Therefore, public policies should address those who do not fulfill those when promoting higher homeownership rates. For example, attention should be given to low and middle-income individuals.Originality/valueThe paper emphasised the characteristics of a homeowner in Europe, contributing to the discussion on this topic among policymakers, practitioners and researchers in Europe.