Exploring the demographic location of housing wealth in East Asia

Abstract

The spread of homeownership has had a profound impact on the pattern of life chances and opportunities across a wide range of societies with varying effects within and between generations. Particular attention has been paid to the impact of inheritance and inter vivos transfers associated with the growth of housing wealth. Both academics and policy makers have been concerned with its wider implications for the distribution of wealth. Most commentary and analysis have, however, been focused on Western societies, with more mature homeownership systems. Arguably, however, it is in East Asian societies where the combined impacts of rapid economic development, housing tenure change and substantial house price inflation have produced the most striking social transformation with the potential to exacerbate already widening social divisions. This paper explores the ways in which key institutional, economic and housing market factors have shaped the demographic distribution of housing wealth in China, Japan and Hong Kong and the likely implications for flows of assistance between generations. These shifting and contrasting relationships will have important implications for public policy priorities in the future.