Housing tenure of young people through a multilevel strategy: differences according to living arrangements

Abstract

ABSTRACT In this study, we identify and analyse the key determinants of the housing tenure regime and residential independence of young adults in Spain. We use a multilevel strategy that allows us to take into account the heterogeneity amongst regions in both homeownership rate and residential independence rate. Our focus is on young adults as this group have a significant effect on the real estate market. Furthermore, young adults are at an age in their life cycle when important events occur. The results show that demographic factors are more important than economic factors in both processes. Also, for these young adults, the sociocultural norms of each region are not the main criteria in housing tenure and residential independence. Given the recent changes seen in the type of cohabitation, we also analyse the housing tenure for different groups of young adults according to their living arrangements (alone, married couple or common-law couple). For young adults living alone, we find there is little variability among regions. Differences are seen in the factors that influence homeownership among young adults who have formalized their union through marriage and those who are part of a common-law couple.