Moving up the social ladder: homeownership and expected socioeconomic status among migrant young adults in China

Abstract

A substantial body of literature on the promotion of socioeconomic mobility has focussed on the role played by government support and human capital investment. However, homeownership as a channel for upward socioeconomic mobility has been under-researched. This study investigates the relationship between homeownership and expected socioeconomic status by using data from a self-conducted survey in 2021 on migrant young adults in China’s five superstar cities (i.e., Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou) where housing prices have been soaring in the past decade. Results indicate that homeowners expect higher socioeconomic status 5 years later than renters. This effect cannot be explained by household characteristics, such as current socioeconomic status, income and education, and occupational characteristics, such as job positions and work units. Explanations from the perspective of asset appreciation and social integration are examined for this effect. Further analyses show a larger effect of homeownership for those who own at least two homes, with a college degree or above, or with a mortgage loan.