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					                                                                                                              10/5/2012 9:32 AM



     Working Paper No 849: Drivers of homeownership rates in selected OECD countries


Figures
Figure 1. Homeownership rates by age group
Figure 2. Homeownership rates by household disposable income quartile
Figure 3. Tax relief on debt financing cost of homeownership1, 2009
Figure 4. Impact of a unit increase in household disposable income on the probability of being a homeowner¹
Figure 5. The contribution of ageing to the change in the aggregate homeownership rate¹
Figure 6. Homeownership, financial deregulation and housing tax relief
Figure 7. Who benefits from the home mortgage interest deduction?

Tables
Table 1. Aggregate homeownership rates in selected OECD countries
Table 2. Contribution of household size and structure to the change in the aggregate homeownership
Table 3. Panel estimation of homeownership rates
Table 4. The effect of policies on tenure choice¹



APPENDIX B: ADDITIONAL CHARTS
Figure B1. Homeownership rate by age group
Figure B2. Homeownership rate by Income quartile

APPENDIX D: EMPIRICAL TABLES
Table D1. Logistic regression coefficients from tenure choice equation
Table D1. Logistic regression coefficients from tenure choice equation (continued)
Table D2. Marginal effects coefficients from tenure choice equation
Table D2. Marginal effects coefficients from tenure choice equation (continued)

APPENDIX E: DEMOGRAPHIC AND SOCIO-ECONOMIC CHANGES
Table E1. Sample means for explanatory variables
Table E1. Sample means for explanatory variables (continued)

APPENDIX F: DETAILED DECOMPOSITION RESULTS
Figure F1. Detailed decompositions – countries with rising homeownership rates
Figure F2. Detailed decompositions – countries stable or declining homeownership rates




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                                    Figure 1. Homeownership rates by age group                                                   Content

                                               Selected OECD countries
                                                                                                                                                25-34     35-44     45-54     55-64     65-74     75-84
                                                                                                                         Germany (2007)           15.89        38     46.53     55.97     50.91     47.55
               Germany (2007)           Germany (1994)            United States (2007)            United States (1997)
                                                                                                                         Germany (1994)           18.42     37.92     45.25     47.69     46.93     31.19
   %                                                                                                                     United States (2007)     48.44     67.94     75.57     80.69     82.14     79.72
100                                                                                                                      United States (1997)     44.57      66.5     75.82     80.11     81.77      78.9
 90                                                                                                                      Canada (2004)             57.5     70.93     75.27     78.03     76.65     67.94
                                                                                                                         Canada (1994)            44.81     66.66     75.27     76.51      72.2     61.56
 80                                                                                                                      Spain (2004)             73.08     78.12     86.56     90.01     89.12     86.26
 70
                                                                                                                         Spain (1995)             62.11     78.37     85.46      89.6     85.64     81.64
                                                                                                                         Australia (2003)         48.87     67.71     79.06     81.42     82.82     82.31
 60                                                                                                                      Australia (1995)         52.83     72.99     80.79     83.48     83.26     80.78
                                                                                                                         Luxembourg (2004)        44.92     67.07     72.22      77.2     84.21      81.6
 50
                                                                                                                         Luxembourg (1997)        48.44     73.41     76.59     84.82     81.64      78.1
 40

 30

 20

 10

  0
            25-34               35-44            45-54             55-64                  65-74            75-84
                                                                                                             Age group



                    Canada (2004)             Canada (1994)                Spain (2004)              Spain (1995)
   %
100

 90

 80

 70

 60

 50

 40

 30

 20

 10

  0
            25-34               35-44            45-54             55-64                  65-74             75-84
                                                                                                             Age group



                Australia (2003)         Australia (1995)          Luxembourg (2004)              Luxembourg (1997)

   %
100

 90

 80

 70

 60

 50

 40

 30

 20

 10

  0
            25-34               35-44            45-54             55-64                  65-74             75-84
                                                                                                             Age group
 Sources: OECD, Luxembourg Income Study (LIS), GSOEP and the American Housing Survey.




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                    Figure 2. Homeownership rates by household disposable income quartile                                   Content
                                              Selected OECD countries
                                                                                                                                                        Second quartile quartile quartile
                                                                                                                                           First quartile         Third       Last
                                                                                                                    Australia (2003)              61.0       63.7       72.4        81.4
                 Australia (2003)          Australia (1995)             Austria (2004)         Austria (1995)
                                                                                                                    Australia (1995)              63.5       64.9       74.7        82.9
  %                                                                                                                 Austria (2004)                33.2       45.4       55.6        72.1
100                                                                                                                 Austria (1995)                44.4       46.7       53.6        62.7
 90                                                                                                                 Denmark (2004)                22.3       36.1       62.6        85.6
                                                                                                                    Denmark (1992)                27.0       37.1       57.6        82.7
 80                                                                                                                 Netherlands (1999)            15.9       41.4       74.5        88.1
                                                                                                                    Netherlands (1994)            17.9       31.6       60.4        80.3
 70
                                                                                                                    Germany (2007)                21.5      33.05      43.62       61.98
 60                                                                                                                 Germany (1994)              19.55       27.57      37.54       57.45
                                                                                                                    United States (2007)        46.37       61.04      74.99       89.59
 50
                                                                                                                    United States (1997)        49.37       58.54      72.44       87.15
 40
 30
 20
 10
  0
             First quartile           Second quartile              Third quartile             Last quartile




               Denmark (2004)           Denmark (1992)            Netherlands (1999)          Netherlands (1994)
  %
100
 90
 80
 70
 60
 50
 40
 30
 20
 10
  0
             First quartile            Second quartile             Third quartile              Last quartile



               Germany (2007)          Germany (1994)           United States (2007)         United States (1997)

  %
100
 90
 80
 70
 60
 50
 40
 30
 20
 10
  0
             First quartile            Second quartile             Third quartile              Last quartile

Sources: OECD, Luxembourg Income Study (LIS), GSOEP and the American Housing Survey.




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                                Figure 3. Tax relief on debt financing cost of homeownership1, 2009
                                                   Wedge increasing in the degree of tax relief

                Wedge
          1.8

          1.6

          1.4

          1.2

          1.0

          0.8

          0.6

          0.4

          0.2

          0.0



         1. This indicator takes into account if interest payments on mortgage debt are deductible from taxable income and if there are
         any limits on the allowed period of deduction or the deductible amount, and if tax credits for loans are available (see Johansson
         2011 for details). For countries that have no tax relief on debt financing costs, this indicator takes the value of zero.

         Source: Calculations based on OECD Housing Market questionnaire. See Johansson (2011) for details.




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                                                                       Content



                                                                      Nld           1.62
                                                                      Cze           1.60
                                                                      Dnk           1.20
                                                                      Nor           1.14
                                                                      Grc           1.05
                                                                      Fin           1.04
                                                                      Swe           1.00
                                                                      Usa           0.96
                                                                      Bel           0.81
                                                                      Che           0.65
                                                                      Esp           0.60
                                                                      Fra           0.54
                                                                      Irl           0.31
                                                                      Prt           0.23
                                                                      Lux           0.19
                                                                      Aut           0.18
                                                                      Ita           0.15




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       Figure 4. Impact of a unit increase in household disposable income on the probability of being a homeowner¹

                             Percentage change in the probability of being a homeowner; selected OECD countries


      14



      12



      10



        8



        6



        4



        2



        0
             Aus       Aut        Can       Dnk       Fin      Deu        Ita       Lux      Esp       Che        Gbr      Usa


     1. Calculations are based on the marginal effects estimation contained in Tables C2 of Appendix C, and show the impact on the
     probability of a rise in household income equivalent to 10 000 local currency units.
     Source: OECD calculations based on household datasets sourced from LIS, the GSOEP and the American Housing Survey.




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                                                                          Content




                                                                         Aus           2.000
                                                                         Aut           4.072
                                                                         Can           2.700
                                                                         Dnk           1.390
                                                                         Fin          11.800
                                                                         Deu           8.150
                                                                         Ita           2.800
                                                                         Lux           2.578
                                                                         Esp           4.573
                                                                         Che           1.400
                                                                         Gbr           6.100
                                                                         Usa           3.040




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                    Figure 5. The contribution of ageing to the change in the aggregate homeownership rate¹
                                                 Circa 1995 to 2005; selected OECD countries



                    Actual           Explained by age structure          Explained by non-age factors          Unexplained

         % points
          8



          6



          4



          2



          0



         -2



         -4



         -6
                Can          Esp    Aut      Che       Deu        Ita      Gbr       Usa       Fin      Dnk       Aus        Lux


         1. The dot refers to the actual change in the aggregate homeownership rate over the period studied. This can be decomposed
         into a part explained by changes in household characteristics – which include age structure and other non-age factors such as
         household structure, household income, and education – and a component which is unexplained by changes in household
         characteristics.
         Source: OECD calculations based on household datasets sourced from LIS, the GSOEP and the American Housing Survey.




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                                                     Content



                                                                 E            age structurenon-age factors
                                                    Actual change xplained byExplained byUnexplained
                                              Can           7.52         1.16        1.28        5.07
                                              Esp           5.57        -0.01        0.85        4.73
                                              Aut           5.32         0.35        3.33        1.65
                                              Che           5.15         2.00       -1.03        4.18
                                              Deu           4.34         1.10       -0.23        3.46
                                              Ita           3.70         0.45       -1.91        5.15
                                              Gbr           3.18         0.57        1.91        0.69
                                              Usa           2.46         0.76       -0.11        1.81
                                              Fin           0.57         0.81        3.89       -4.14
                                              Dnk           0.50         1.36        3.90       -4.75
                                              Aus          -1.90         0.54        0.08       -2.53
                                              Lux          -2.29         0.53       -0.64       -2.19




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                       Figure 6. Homeownership, financial deregulation and housing tax relief
                                 Impact of a 10 percentage increase in the maximum (LTV ratio on
                                the homeownership rate of households in the second income quartile



                                                        Impact at median tax relief

          Impact on the homeownership rate (%)
          20

                                                                                         Tax relief less
                                                                                           generous

          15




          10

                                                                                        Tax relief more
                                  Tax relief less                                         generous
                                    generous
           5



                                 Tax relief more
                                   generous
           0
                                                                                           Household
                                  All households                                         aged 25-34 years


        Notes: The Figure shows the impact of a 10 percentage point – or one standard deviation – rise in the maximum
        LTV on the homeownership rate of each group. The impact on homeownership is expressed in percentage terms,
        relative to the sample median homeownership rate for each group, to control for differences in median level of
        homeownership between each group. The dot shows the estimated impact of an increase in the LTV on the group-
        specific homeownership rate when tax relief on mortgage debt financing is set equal to the sample median level.
        The upper (lower) bound shows the estimated impact when tax relief is set at 0.5 standard deviations below (above)
        the sample median level.
        When Tax relief is set to the sample median, the overall impact coefficient on LTV is 0.19 for all households and
        0.44 for those aged 25-34 years (see columns 1 and 3 of Table 3). In turn, these coefficients are used to construct
        the following policy experiments:

            (i) All households in the second income quartile : a 10 percentage point rise in the LTV is associated with a 1.9
            percentage point rise in the group-specific homeownership rate. This is equivalent to a 3.4% rise – as indicated
            by the dot – relative to the group-specific sample median homeownership rate of 55.6%.
            (ii) Households aged 25-34 years in the second income quartile : a 10 percentage point rise in the LTV is
            associated with a 4.4 percentage point rise in the group-specific homeownership rate. This is equivalent to a
            12.4% rise – as indicated by the dot – relative to the group-specific sample median homeownership rate of
            35.1%.
        Source: LIS and OECD Calculations. LTVs are plotted in Figure 14 of Andrews, Caldera Sánchez and Johansson
        (2011). and are sourced from Chiuri and Jappelli (2003), Catte et al (2004) and ECB (2009).




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                                                    Content




                                                                 Impact at median tax relief
                                               All households     3.428515 4.312065 2.544964
                                               Household          12.44551 15.91448 8.976547




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                      Figure 7. Who benefits from the home mortgage interest deduction?

                                                     United States, 20031

                     Percent of all tax returns in each income bracket
                     Percent of the value of the home mortgage interest deduction claimed by each income bracket
    %
  40


  35


  30


  25


  20


  15


  10


   5


   0
         Under 20       20-29.99      30-39.99       40-49.99       50-74.99      75-99.99    100-199.99 200 and over

                                                                                   Adjusted Gross Annual Income ($'000s)


1. The columns show the share of tax filers in each income bracket while the line shows the share of the value of mortgage
interest deductions claimed by each income bracket. For instance, while 38% of all filed tax returns in 2003 pertained to
adjustable gross incomes of less than $20,000, this income bracket accounted for only 4% of the value of mortgage interest
deductions. As noted in Prante (2006), while adjustable gross income differs somewhat from other measures of personal
income, this distinction does not affect the distributional analysis shown above.
Source: Calculations from Prante (2006) based on Internal Revenue Service data.
  Content

             Percent of the value of the home mortgage interest deduction claimed by each income bracket
                        Percent of all tax returns in each income bracket
Adjusted     Percent of Percent of Percent of
Under 20           4.2       37.8            4
20-29.99           5.1       14.1         13.1
30-39.99           7.2       10.7         24.2
40-49.99           7.9           8        35.2
50-74.99          21.7       13.3         50.9
75-99.99          18.2         7.3          69
100-199.99        24.4         6.8        78.9
200 and over      11.2         1.9        75.7
eduction claimed by each income bracket
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                  Table 1. Aggregate homeownership rates in selected OECD countries                          Content




                                                                   Circa 1990s¹              2004²

               Australia                                               71.4                  69.5
               Austria                                                 46.3                  51.6
               Belgium                                                 67.7                  71.7³
               Canada                                                  61.3                  68.9
               Denmark                                                 51.0                  51.6
               Finland                                                 65.4                  66.0
               France                                                  55.3                  54.8³
               Germany                                                 36.3                  41.0
               Greece                                                  83.1                  73.2
               Ireland                                                 79.6                  81.4³
               Italy                                                   64.2                  67.9
               Luxembourg                                              71.6                  69.3
               Mexico                                                  77.2                  70.7
               Netherlands                                             47.5                  55.4³
               Spain                                                   77.8                  83.2
               Switzerland                                             33.1                  38.4
               United Kingdom                                          67.5                  70.7
               United States                                           66.2                  68.7
               1. 1987 for Austria, 1990 for Spain, 1991 for Italy, 1992 for Denmark and Switzerland,
               1994 for Canada, France, Germany, Mexico and the Netherlands, 1995 for Australia,
               Belgium, Finland, Greece and Ireland, 1997 for Luxembourg and United States.
               2. 2003 for Australia, 2007 for Germany and United States.
               3. The data is particularly dated for Belgium (2000), France (2000), Ireland (2000) and the
               Netherlands (1999).
               Sources: OECD, Luxembourg Income Study (LIS), GSOEP and the American Housing
               Survey.




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                Table 2. Contribution of household size and structure to the change in the
                                                                                                              Content
                                        aggregate homeownership

                            Percentage point contribution; ranked in order of combined effect


                                            Explained by                                  Combined effect
                                                                   Explained by
                                           household size
                                                               household structure (2)
                                                 (1)                                        (3) = (1) + (2)

           Austria                               1.1                     0.2                     1.2
           Canada                                0.1                     0.3                     0.4
           Denmark                                ..                     0.3                     0.3
           Luxembourg                            -0.1                    0.1                     -0.1
           Finland                               -0.3                    0.2                     -0.1
           United Kingdom                         ..                     -0.1                    -0.1
           Spain                                  ..                     -0.4                    -0.4
           Switzerland                           -0.6                    0.2                     -0.4
           United States                         0.0                     -0.4                    -0.5
           Australia                              ..                     -0.7                    -0.7
           Italy                                 -0.4                    -0.4                    -0.8
           Germany                               -0.2                    -0.8                    -1.0
           Notes: The combined effect corresponds to the household size and structure bar in Figures F1
           and F2. For Australia, Denmark, Spain and the United Kingdom, the decompositions are based on
           regressions that do not include household size.
           Source: OECD calculations based on household datasets sourced from LIS, the GSOEP and the
           American Housing Survey.




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                               Table 3. Panel estimation of homeownership rates                                              Content
                                           Households in income quartile 2

                                                           All households              Households 25-34 years
                                                         (1)             (2)             (3)            (4)
   Variables of interest
   Loan to value ratio (LTV)                          0.255***                         0.594***
                                                       [0.054]                          [0.125]
   LTV x Tax relief                                   -0.189**                         -0.471*
                                                       [0.086]                          [0.268]
   Financial reform index                                                5.742                          11.215*
                                                                        [4.119]                          [6.255]
   Financial reform index x Tax relief                                -12.307***                       -26.102***
                                                                       [3.005]                          [6.325]
   Impact of financial deregulation terms on homeownership rates evaluated at the median of the structural
   features (p-values in brackets)
   LTV                                              0.192***                         0.437***
                                                       [0.001]                          [0.000]
   Financial reform index                                              1.636***                         2.509***
                                                                       [0.002]                          [0.001]
   Observations                                          63              60               60              57
   Number of Countries                                   16              16               15              15
   R-squared                                            0.93            0.93             0.82             0.79
   Notes: Standard errors in brackets. * significant at 10%; ** significant at 5%; *** significant at 1%. Regression
   includes country and time fixed effects and control variables such as real household disposable income, real
   interest rates, real construction costs, house price to rent ratio, share of population aged 25-44 years and the
   homeownership rates other income/age groups. The sample includes the following countries: Australia, Austria,
   Belgium, Canada, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Spain, Switzerland,
   the United Kingdom and the United States.




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                               Table 4. The effect of policies on tenure choice¹                                             Content


                                                                      (1)                         (2)
                                                                                              Security of
                        Policies                                 Rent control
                                                                                                tenure

  Dependent variable=1 if homeowner, 0 if tenant (living in the private or social sector)
  Policy                                                           -0.083***                   -0.071***
                                                                    (0.002)                     (0.003)

  Number of observations                                            224359                      235953
  Number of countries                                                 22                          22
  1. Regressions include control variables on household characteristics such as real household disposable income,
  age, education, employment status, household size, cohabitation status; as well as controls for the degree of
  urbanisation and total national income. Values are marginal effects. The coefficients correspond to the impact of
  one unit change in the probability to be a homeowner estimated at the mean of the independent variables. The
  sample is restricted to individuals who are the head of the household and aged 24-66 to avoid the results being
  influenced by atypical tenureship. The estimates are weighted by individual sampling probability. Robust standard
  errors clustered at the country level in parentheses. *** p<0.01, ** p<0.05, * p<0.1.

  Sources: OECD calculations based on 2007 EU-SILC for European countries, 2007 HILDA for Australia, 2007
  SHP for Switzerland, 2007 AHS for the United States and the OECD Housing Market questionnaire. This analysis
  covers the following countries: Australia, Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany,
  Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Slovenia, Spain, Sweden,
  Switzerland, United Kingdom and United States.




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                                           Figure B1. Homeownership rate by age group                                                             Content


                 Austria (2004)                   Belgium (2000)                      Denmark (2004)                  Finland (2004)
                 Austria (1995)                   Belgium (1995)                      Denmark (1992)                  Finland (1995)
   %                                                                    %                                                                                           25-34     35-44     45-54     55-64     65-74     75-84
 100                                                                  100                                                                   Austria (2004)            37.43     51.54     62.73     61.41     56.82     45.01
                                                                                                                                            Austria (1995)            38.36      58.1     59.02     66.56     59.97     54.37
  90                                                                   90
                                                                                                                                            Belgium (2000)            53.02     74.13     79.16     79.55     77.77   #N/A
  80                                                                   80                                                                   Belgium (1995)            49.16     73.14     77.14     74.29     73.11     60.78
                                                                                                                                            Denmark (2004)            39.66     57.02     62.82     65.08     56.45     42.72
  70                                                                   70                                                                   Denmark (1992)            41.61     61.99     65.52      62.9     52.45     42.46
                                                                                                                                            Finland (2004)            45.59     68.25     74.51      78.7      81.1     77.94
  60                                                                   60
                                                                                                                                            Finland (1995)            44.27     68.23     76.61     79.72     83.02     73.91
  50                                                                   50                                                                   France (2000)             25.16     53.52     61.93     68.49     72.34     67.32
                                                                                                                                            France (1994)             26.78     56.27     66.42     71.96     68.94     60.79
  40                                                                   40                                                                   Greece (2004)             49.37     65.14     77.86     86.83     86.91     81.25
                                                                                                                                            Greece (1995)             65.28     77.32     84.79     90.99     91.11     90.48
  30                                                                   30
                                                                                                                                            Ireland (2000)            69.97     86.49     86.58     85.97     94.42     89.13
  20                                                                   20                                                                   Ireland (1995)            65.05     83.42     88.99     88.58      90.2      86.2
                                                                                                                                            Italy (2004)              45.18     59.18     69.41     78.92     76.58     71.62
  10                                                                   10                                                                   Italy (1995)              48.14     59.08      71.3      74.9     69.53     56.48
                                                                                                                                            Mexico (2004)              48.4     71.29     80.84     86.47     84.98      84.1
   0                                                                    0
                                                                                                                                            Mexico (1994)             64.49     81.28     87.38     89.03     89.93     87.98
        25-34     35-44         45-54   55-64     65-74       75-84         25-34       35-44     45-54    55-64      65-74       75-84
                                                                                                                                            Netherlands (1999)        56.35     69.89     64.85      62.8     42.19   #N/A
                                                          Age group                                                           Age group
                                                                                                                                            Netherlands (1994)        45.61     62.44     61.76     51.87     35.14     24.35
                  France (2000)                  Greece (2004)                          Ireland (2000)                   Italy (2004)       Switzerland (2004)        10.85     35.24     48.56     53.15     50.31     42.78
                  France (1994)                  Greece (1995)                          Ireland (1995)                   Italy (1995)       Switzerland (1992)        16.17     35.44     43.82      43.1     43.99     35.48
   %                                                                    %                                                                   United Kingdom (2004)     58.96     72.66     79.91     79.77      76.8     68.91
 100                                                                  100                                                                   United Kingdom (1995)     59.66     72.26     76.45     73.99     66.05     55.65

  90                                                                   90

  80                                                                   80

  70                                                                   70

  60                                                                   60

  50                                                                   50

  40                                                                   40

  30                                                                   30

  20                                                                   20

  10                                                                   10

   0                                                                    0
       25-34      35-44     45-54       55-64   65-74       75-84           25-34       35-44      45-54    55-64       65-74       75-84
                                                          Age group                                                             Age group

                Mexico (2004)                   Netherlands (1999)                  Switzerland (2004)              United Kingdom (2004)
                Mexico (1994)                   Netherlands (1994)                  Switzerland (1992)              United Kingdom (1995)
   %                                                                    %
 100                                                                  100

  90                                                                   90

  80                                                                   80

  70                                                                   70

  60                                                                   60

  50                                                                   50

  40                                                                   40

  30                                                                   30

  20                                                                   20

  10                                                                   10

   0                                                                    0
       25-34      35-44      45-54      55-64    65-74       75-84          25-34       35-44      45-54   55-64      65-74       75-84
                                                          Age group                                                           Age group

 Source: OECD calculations based on LIS data.




S:\Data\SPAD1\Housing\Working papers\Drivers of homeownership rates in OECD countries\Annex2_AD.xlsx                                                                                                                     FigB1
                                                                                                                                                                                                                                 10/5/2012 9:32 AM




                                           Figure B2. Homeownership rate by Income quartile                                                                       Content


                  Belgium (2000)                      Canada (2004)                              Finland (2004)                         France (2000)
                  Belgium (1995)                      Canada (1994)                              Finland (1995)                         France (1994)
  %                                                                             %                                                                                                            Second quartile quartile quartile
                                                                                                                                                                                First quartile        Third        Last
100                                                                           100                                                                           Belgium (2000)           52.12      64.54       77.95       90.14
                                                                                                                                                            Belgium (1995)           47.75      59.24       76.31       85.76
90                                                                             90                                                                           Canada (2004)            40.92      65.22       78.73       90.63
                                                                                                                                                            Canada (1994)            33.04      54.79       71.47       86.11
80                                                                             80
                                                                                                                                                            Finland (2004)           43.88      58.34       73.41       88.31
70                                                                             70                                                                           Finland (1995)           45.35      56.86       71.34       88.11
                                                                                                                                                            France (2000)          #N/A         48.85       59.34       74.36
60                                                                             60                                                                           France (1994)            37.21      48.75       61.24       74.16
                                                                                                                                                            Greece (2004)            71.03      69.48       72.65        79.4
50                                                                             50                                                                           Greece (1995)            86.93      80.91        81.1       84.21
                                                                                                                                                            Ireland (2000)            68.5      72.72       90.88       94.99
40                                                                             40
                                                                                                                                                            Ireland (1995)           62.93      70.32       90.64        96.3
30                                                                             30                                                                           Italy (2004)             60.37      60.94       69.93       80.43
                                                                                                                                                            Italy (1995)             54.58      59.56       67.07       78.44
20                                                                             20                                                                           Luxembourg (2004)        48.23      70.22        76.2       82.73
                                                                                                                                                            Luxembourg (1997)        56.36      67.54       77.95       84.67
10                                                                             10                                                                           Mexico (2004)            71.04      65.82       69.07       76.95
                                                                                                                                                            Mexico (1994)            81.21      71.68       73.92       82.01
 0                                                                              0
      First quartile   Second quartile   Third quartile      Last quartile          First quartile   Second quartile   Third quartile       Last quartile   Spain (2004)              77.1      80.83       85.12        90.5
                                                                                                                                                            Spain (1995)             76.53      78.41       82.57       87.09
                  Greece (2004)                           Ireland (2000)                      Italy (2004)                        Luxembourg (2004)         Switzerland (2004)       28.12      30.37       41.61       53.58
                  Greece (1995)                           Ireland (1995)                      Italy (1995)                        Luxembourg (1997)         Switzerland (1992)       24.09       21.9       33.56       53.53
  %                                                                             %                                                                           United Kingdom (2004) 53.78         61.03       78.97       89.02
100                                                                           100                                                                           United Kingdom (1995) 44.25         53.54       77.44       88.83

 90                                                                            90

 80                                                                            80

 70                                                                            70

 60                                                                            60

 50                                                                            50

 40                                                                            40

 30                                                                            30

 20                                                                            20

 10                                                                            10

  0                                                                             0
      First quartile   Second quartile   Third quartile       Last quartile         First quartile   Second quartile   Third quartile      Last quartile

                   Mexico (2004)                          Spain (2004)                      Switzerland (2004)                  United Kingdom (2004)
                   Mexico (1994)                          Spain (1995)                      Switzerland (1992)                  United Kingdom (1995)
  %                                                                             %
100                                                                           100

90                                                                             90

80                                                                             80

70                                                                             70

60                                                                             60

50                                                                             50

40                                                                             40

30                                                                             30

20                                                                             20

10                                                                             10

 0                                                                              0
      First quartile   Second quartile   Third quartile       Last quartile         First quartile   Second quartile   Third quartile      Last quartile


Source: OECD calculations based on LIS data.




S:\Data\SPAD1\Housing\Working papers\Drivers of homeownership rates in OECD countries\Annex2_AD.xlsx                                                                                                                                        FigB2
                                                                                                                                                                                               10/5/2012 9:32 AM



                                             Table D1. Logistic regression coefficients from tenure choice equation                                                                  Content
                                                                          Dependent variable: Probability of being a homeowner

                                                           (1)                        (2)                         (3)                         (4)                     (5)
                                                          Austria                   Finland                      Italy                       Spain                Switzerland
                                                               Standard                   Standard                   Standard                    Standard                 Standard
                                               Coefficient                  Coefficient              Coefficient                   Coefficient              Coefficient
                                                                 error                      error                      error                       error                    error

 Age of Household Head
   25-29 years                                   -0.022         (0.225)      0.488***      (0.136)   -1.126***           (0.217)     0.544*       (0.302)   -1.680***      (0.395)
   30-34 years                                  0.444**         (0.188)      1.160***      (0.139)   -0.978***           (0.198)    0.895***      (0.290)    -0.694**      (0.307)
   35-44 years                                  0.679***        (0.170)      1.593***      (0.132)    -0.350*            (0.179)    1.028***      (0.281)     0.241        (0.262)
   45-64 years                                  1.239***        (0.157)      2.277***      (0.131)     0.053             (0.163)    1.663***      (0.280)    1.020***      (0.248)
   65 years and over                            1.233***        (0.162)      2.985***      (0.139)     0.303*            (0.164)    2.044***      (0.283)    1.430***      (0.255)

 Household structure
   Household Size                                0.333***       (0.050)       0.173***     (0.044)     0.056             (0.035)       ..            ..      0.367***      (0.084)
   H2: Couple with dependents                     -0.039        (0.127)        -0.112      (0.091)   -0.590***           (0.178)     0.003        (0.093)     -0.057       (0.197)
   H3: Single without dependents                  -0.142        (0.094)        -0.084      (0.108)   -0.711***           (0.141)   -0.320***      (0.091)     -0.249       (0.158)
   H4: Single with dependents                   -0.485***       (0.165)      -0.936***     (0.146)   -1.496***           (0.446)   -0.560***      (0.154)   -0.877***      (0.289)
   Male household head                             0.105        (0.068)         0.044      (0.061)    -0.011             (0.069)     0.092        (0.076)    0.562***      (0.125)

 Real Household Disposable Income
   Income                                       0.029***        (0.005)      0.062***      (0.006)    0.000***           (0.000)    0.040***      (0.004)    0.011***      (0.002)
   Income squared                               0.000***        (0.000)      0.000***      (0.000)    0.000***           (0.000)    0.000***      (0.000)    0.000***      (0.000)

 Education of household head
   Tertiary                                      -0.089         (0.113)      0.295***      (0.064)     0.222*            (0.114)    -0.080        (0.087)     0.117        (0.146)

 Indicators of socio-economic disadvantage
    Disability (Household Head)                     ..             ..         -0.067       (0.072)    -0.166             (0.127)       ..            ..         ..            ..
    Disability (Spouse of Household Head)           ..             ..          0.126       (0.095)     0.005             (0.184)       ..            ..         ..            ..
    Ethnic minority                             -1.269***       (0.168)       -0.023       (0.113)       ..                 ..         ..            ..         ..            ..
    Immigrant/Foreigner                             ..             ..            ..           ..     -1.436***           (0.152)       ..            ..     -1.382***      (0.148)
 Constant                                       -2.292***       (0.220)      -2.694***     (0.165)    0.387*             (0.221)    -0.572*       (0.315)   -2.780***      (0.355)

 Interaction terms
    Income * Age                                           No                         No                      No                            No                        No
    Income * Household structure                           No                         No                      Yes                           No                        No
 Regional dummies                                          No                         Yes                     Yes                           Yes                       No
 Surveys                                               1987, 2004                  1995, 2004              1991, 2004                    1990, 2004               1992, 2004
 Number of observations                                   16294                      20488                16171                            33986                     9547
 Classification rate                                     64.78%                     82.36%                  68.72%                        80.80%                   69.64%
 Robust standard errors in parenthesis, * significant at 5%; ** significant at 1%.
 Sources: OECD, LIS) German Socioeconomic Panel and American Housing Survey.




S:\Data\SPAD1\Housing\Working papers\Drivers of homeownership rates in OECD countries\Annex2_AD.xlsx                                                                                                    TabD1a
                                                                                                                                                                                            10/5/2012 9:32 AM



                                              Table D1. Logistic regression coefficients from tenure choice equation (continued)                                                                    Content
                                                                   Dependent variable: Probability of being a homeowner

                                          (1)                   (2)                   (3)                   (4)                   (5)                   (6)                   (7)
                                       Canada                Denmark              Germany            United States             Australia          Luxembourg          United Kingdom
                                             Standard              Standard              Standard              Standard              Standard              Standard              Standard
                                Coefficient           Coefficient           Coefficient           Coefficient           Coefficient           Coefficient           Coefficient
                                               error                 error                 error                 error                 error                 error                 error

Age of Household Head
  25-29 years                     -0.032     (0.100)    0.087      (0.113)   0.568***    (0.199)   0.548**     (0.059)     0.220      (0.246)    0.301      (0.292)   0.454***    (0.115)
  30-34 years                    0.498***    (0.101)   0.377***    (0.114)   1.118***    (0.194)   1.098**     (0.058)    0.795***    (0.229)   0.709**     (0.281)   1.076***    (0.119)
  35-44 years                    0.967***    (0.090)   0.844***    (0.112)   1.757***    (0.187)   1.627**     (0.055)    1.381***    (0.210)   1.148***    (0.273)   1.278***    (0.099)
  45-64 years                    1.580***    (0.085)   1.355***    (0.088)   2.241***    (0.185)   2.313**     (0.055)    1.857***    (0.208)   1.453***    (0.263)   1.687***    (0.109)
  65 years and over              1.715***    (0.101)   1.905***    (0.083)   2.767***    (0.186)   3.007**     (0.058)    2.442***    (0.218)   1.934***    (0.266)   2.091***    (0.097)

Household structure
 Household Size                   0.050***   (0.015)                           0.031     (0.027)   0.067**     (0.008)         ..        ..     0.284***    (0.068)
 Couple with dependents          -0.351***   (0.085)    0.322**    (0.139)    0.150**    (0.067)      ..          ..        -0.250*   (0.144)    -0.138     (0.180)    -0.054     (0.108)
 Single without dependents       -0.830***   (0.060)   -0.864***   (0.069)   -0.579***   (0.053)      ..          ..      -1.423***   (0.106)   -0.319**    (0.143)   -0.886***   (0.076)
 Single with dependents              ..         ..         ..         ..     -0.713***   (0.094)      ..          ..           ..        ..         ..         ..         ..         ..
 Male household head              0.151***   (0.024)    0.483***   (0.020)    -0.054     (0.040)   0.065**     (0.020)     -0.149**   (0.063)    -0.043     (0.122)    0.052*     (0.029)
 Married                             ..         ..         ..         ..         ..         ..     1.124**     (0.030)         ..        ..         ..         ..         ..         ..
 Divorced, widowed, separated        ..         ..         ..         ..         ..         ..     0.287**     (0.029)         ..        ..         ..         ..         ..         ..

Real Household Disposable Income
 Income                        0.021***      (0.002)   0.007***    (0.000)    0.001***   (0.000)    0.000**    (0.000)     -0.004     (0.005)   0.019***    (0.003)   0.015***    (0.004)
 Income squared                0.000***      (0.000)   0.000***    (0.000)   -0.000***   (0.000)   -0.000**    (0.000)      0.000     (0.000)   0.000**     (0.000)   0.000***    (0.000)

Education of household head
  Secondary                       0.013      (0.032)      ..          ..     0.358***    (0.040)   0.275**     (0.027)       ..          ..        ..          ..        ..          ..
  Associate                      0.199***    (0.033)      ..          ..     0.225***    (0.063)   0.298**     (0.029)    0.386***    (0.048)   0.635**     (0.259)   0.889***    (0.029)
  Tertiary                        0.036      (0.042)   0.285***    (0.027)   0.147***    (0.055)   0.321**     (0.032)    0.218***    (0.066)   -0.234*     (0.129)   1.003***    (0.045)

Indicators of socio-economic disadvantage
  Disability (Household Head)    -0.193***   (0.028)       ..         ..      -0.106**   (0.052)       ..         ..           ..        ..         ..         ..     -0.599***   (0.025)
                                  Head)
  Disability (Spouse of Household-0.089**    (0.045)       ..         ..          ..        ..         ..         ..           ..        ..         ..         ..     -0.320***   (0.038)
  Ethnic minority                    ..         ..         ..         ..          ..        ..         ..         ..           ..        ..         ..         ..     -0.318***   (0.053)
  Immigrant/Foreigner                ..         ..     -1.298***   (0.039)        ..        ..         ..         ..           ..        ..     -1.706***   (0.097)        ..        ..
  Non-English Speaking Background ..            ..         ..         ..          ..        ..         ..         ..      -0.545***   (0.067)       ..         ..          ..        ..
  African American                   ..         ..         ..         ..          ..        ..     -0.767**    (0.027)         ..        ..         ..         ..          ..        ..
  Hispanic                           ..         ..         ..         ..          ..        ..     -0.659**    (0.031)         ..        ..         ..         ..          ..        ..
  Asian                              ..         ..         ..         ..          ..        ..     -0.921**    (0.051)         ..        ..         ..         ..          ..        ..
  American Indian                    ..         ..         ..         ..          ..        ..     -0.438**    (0.086)         ..        ..         ..         ..          ..        ..
Constant                         -1.504***   (0.104)   -2.566***   (0.101)   -5.067***   (0.249)   -3.349**    (0.064)     -0.448**   (0.220)   -1.074***   (0.321)    -0.287**   (0.118)

Interaction terms
   Income * Age                            Yes                      Yes              No           No                             Yes                   No                    Yes
   Income * Household structure            Yes                      Yes              No           No                             Yes                   No                    Yes
Regional dummies                           Yes                       No              Yes          Yes                            Yes                   No                    Yes
Surveys                               1994, 2004                1992, 2004        1994, 2007   1997, 2007                     1995, 2003            1997, 2004            1999, 2004
Number of observations                   68 578                    96 133           17 485       78 266                         16 908                6 136                 52 708
Classification rate                     77.52%                    75.31%           70.81%       77.52%                         76.85%                77.95%                75.49%
Robust standard errors in parenthesis, * significant at 5%; ** significant at 1%.
Sources: OECD, Luxembourg Income Study (LIS), German Socioeconomic Panel and American Housing Survey.




S:\Data\SPAD1\Housing\Working papers\Drivers of homeownership rates in OECD countries\Annex2_AD.xlsx                                                                                                 TabD1b
                                                                                                                                                                                                                               10/5/2012 9:32 AM



                                                                                              Table D2. Marginal effects coefficients from tenure choice equation                                                                     Content
                                                                                                              Dependent variable: Probability of being a homeowner

                                                                                                          (1)                      (2)                         (3)                         (4)                   (5)
                                                                                                         Austria                 Finland                      Italy                       Spain              Switzerland
                                                                                                                Standard             Standard                     Standard                    Standard             Standard
                                                                                                  Coefficient            Coefficient              Coefficient                   Coefficient            Coefficient
                                                                                                                  error                error                        error                       error                error

   Aus Esp                Che               Ita       Age of Household Head
 age2              age2              age2               25-29 years                                 -0.003       (0.056)   0.117***    (0.022)    -0.272***           (0.053)    0.055**       (0.025)   -0.268***   (0.037)
 age3              age3              age3               30-34 years                                0.112**       (0.044)   0.194***    (0.019)    -0.234***           (0.049)    0.084***      (0.020)    -0.131**   (0.054)
 age4              age4              age4               35-44 years                                0.170***      (0.039)   0.258***    (0.020)     -0.078*            (0.042)    0.102***      (0.022)     0.061     (0.061)
 age5              age5              age5               45-64 years                                0.299***      (0.034)   0.397***    (0.023)      0.013             (0.035)    0.176***      (0.026)   0.239***    (0.057)
 age6              age6              age6               65 years and over                          0.286***      (0.033)   0.413***    (0.016)      0.065*            (0.034)    0.192***      (0.021)   0.327***    (0.059)

                                                      Household structure
 hhsize            hhsize            hhsize             Household Size                            0.089***       (0.013)   0.041***    (0.014)     0.013*             (0.008)       ..            ..     0.086***    (0.019)
 h2                h2                h2                 H2: Couple with dependents                  -0.016       (0.032)    -0.034     (0.021)    -0.125***           (0.044)    0.000         (0.011)    -0.019     (0.043)
 h3                h3                h3                 H3: Single without dependents              -0.046**      (0.023)    -0.017     (0.026)    -0.167***           (0.035)   -0.043***      (0.012)    -0.063*    (0.034)
 h4                h4                h4                 H4: Single with dependents                -0.131***      (0.039)   -0.218***   (0.041)    -0.366***           (0.098)   -0.083***      (0.026)   -0.171***   (0.042)
 male              male              male                Male household head                        0.029*       (0.017)    0.010      (0.013)     -0.002             (0.015)     0.011        (0.009)   0.122***    (0.025)

                                                      Real Household Disposable Income
 dpi000j           dpi000j           dpi000j            Income (‘000s of national currency)        0.004***      (0.001)   0.012***    (0.002)     0.003***           (0.000)    0.004***      (0.000)   0.001***    (0.000)

                                                      Education of household head
 educ_hi           educ_tt           educ_tt            Tertiary                                   -0.014        (0.029)   0.058***    (0.016)     0.050**            (0.023)    -0.009        (0.011)    0.027      (0.033)

                                                      Indicators of socio-economic disadvantage
 badhealth         badhealth         badhealth          Disability (Household Head)                   ..           ..       -0.016     (0.016)     -0.038             (0.029)       ..            ..         ..         ..
 badhealth_sp      badhealth_sp      badhealth_sp       Disability (Spouse of Household Head)         ..                    0.028      (0.020)      0.001             (0.040)       ..            ..         ..         ..
 ethnic            ethnic            ethnic             Ethnic minority                           -0.298***      (0.031)    -0.006     (0.023)         ..                ..         ..            ..         ..         ..
 foreigner         foreigner         immigrhd           Immigrant/Foreigner                           ..            ..         ..         ..      -0.345***           (0.034)       ..            ..     -0.258***   (0.021)

                                                      Regional dummies                                         No                       Yes        Yes                                  Yes                     No
                                                      Surveys                                              1987, 2004                1995, 2004 1991, 2004                           1990, 2004              1992, 2004
 nobs              nobs              nobs             Number of observations                                  16 294                   20 488     16 171                               33 986                  9 547
                                                      Classification rate                                    64.78%                   82.36%     68.72%                               80.80%                  69.64%
                                                      Robust standard errors in parenthesis, * significant at 5%; ** significant at 1%.
                                                      Sources: OECD, Luxembourg Income Study (LIS), German Socioeconomic Panel and American Housing Survey.




S:\Data\SPAD1\Housing\Working papers\Drivers of homeownership rates in OECD countries\Annex2_AD.xlsx                                                                                                                                    TabD2a
                                                                                                                                                                                                    10/5/2012 9:32 AM



                                                   Table D2. Marginal effects coefficients from tenure choice equation (continued)                                                                          Content

                                                                         Dependent variable: Probability of being a homeowner


                                                 (1)                   (2)                   (3)                   (4)                   (5)                   (6)                   (7)
                                              Canada               Denmark               Germany            United States             Australia          Luxembourg          United Kingdom
                                                    Standard              Standard              Standard              Standard              Standard              Standard              Standard
                                       Coefficient           Coefficient           Coefficient           Coefficient           Coefficient           Coefficient           Coefficient
                                                      error                 error                 error                 error                 error                 error                 error

Age of Household Head
  25-29 years                            -0.002    (0.028)     0.007        (0.010)   0.146***    (0.049)   0.111***    (0.009)   0.086***    (0.018)    0.055     (0.046)   0.078***    (0.011)
  30-34 years                           0.089***   (0.024)    0.070***      (0.010)   0.278***    (0.043)   0.172***    (0.007)   0.173***    (0.013)   0.115***   (0.037)   0.166***    (0.008)
  35-44 years                           0.145***   (0.022)    0.140***      (0.009)   0.417***    (0.037)   0.247***    (0.007)   0.250***    (0.012)   0.182***   (0.035)   0.233***    (0.008)
  45-64 years                           0.237***   (0.020)    0.244***      (0.008)   0.512***    (0.034)   0.369***    (0.008)   0.367***    (0.014)   0.244***   (0.038)   0.340***    (0.009)
  65 years and over                     0.228***   (0.017)    0.301***      (0.007)   0.588***    (0.027)   0.365***    (0.005)   0.365***    (0.010)   0.274***   (0.028)   0.340***    (0.007)

Household structure
 Household Size                        0.015***    (0.005)                             0.013**    (0.007)   0.014***    (0.002)        ..        ..     0.056***   (0.013)
 Couple with dependents                 -0.086**   (0.034)   0.079***       (0.009)    0.029*     (0.016)      ..          ..       0.021*    (0.012)    -0.031    (0.034)   0.044***    (0.010)
 Single without dependents             -0.187***   (0.024)   -0.161***      (0.006)   -0.143***   (0.012)      ..          ..     -0.254***   (0.014)   -0.065**   (0.028)   -0.166***   (0.009)
 Single with dependents                -0.340***   (0.038)   -0.211***      (0.010)   -0.167***   (0.018)      ..          ..     -0.334***   (0.025)    -0.042    (0.051)   -0.277***   (0.016)
 Male household head                   0.029***    (0.007)   0.115***       (0.005)    -0.012     (0.010)      ..          ..      -0.024**   (0.011)    -0.007    (0.022)    0.013**    (0.006)
 Married                                    ..        ..         ..            ..         ..         ..     0.223***    (0.006)        ..        ..         ..        ..         ..         ..
 Divorced, widowed, separated               ..        ..         ..            ..         ..         ..     0.049***    (0.005)        ..        ..         ..        ..         ..         ..

Real Household Disposable Income
 Income (‘000s of national currency)    0.003***   (0.001)    0.001***      (0.000)   0.008***    (0.000)   0.003***    (0.000)   0.002***    (0.000)   0.003***   (0.000)   0.006***    (0.001)

Education of household head
  Secondary                              0.002     (0.009)       ..            ..     0.087***    (0.009)   0.054***    (0.005)      ..          ..         ..        ..        ..          ..
  Associate                             0.046***   (0.009)       ..            ..     0.060***    (0.016)   0.061***    (0.005)   0.070***    (0.008)   0.101***   (0.033)   0.162***    (0.005)
  Tertiary                               0.019     (0.011)    0.064***      (0.007)   0.046***    (0.014)   0.067***    (0.006)   0.041***    (0.011)    -0.037    (0.025)   0.162***    (0.007)

Indicators of socio-economic disadvantage
  Disability (Household Head)           -0.041***    (0.009)     ..   ..              -0.027**    (0.012)     ..   ..                 ..   ..               ..   ..          -0.121***    (0.005)
  Disability (Spouse of Household Head) -0.021       (0.013)     ..   ..                  ..   ..             ..   ..                 ..   ..               ..   ..          -0.057***    (0.007)
  Ethnic minority                           ..    ..             ..   ..                  ..   ..             ..   ..                 ..   ..               ..   ..          -0.065***    (0.011)
  Immigrant/Foreigner                       ..         ..    -0.305*** (0.007)            ..        ..        ..       ..             ..       ..       -0.353*** (0.021)        ..         ..
  Non-English Speaking Background           ..         ..        ..       ..              ..        ..        ..       ..         -0.111*** (0.015)         ..       ..          ..         ..
  African American                          ..         ..        ..       ..              ..        ..    -0.180*** (0.007)           ..       ..           ..       ..          ..         ..
  Hispanic                                  ..         ..        ..       ..              ..        ..    -0.164*** (0.008)           ..       ..           ..       ..          ..         ..
  Asian                                     ..         ..        ..       ..              ..        ..    -0.202*** (0.013)           ..       ..           ..       ..          ..         ..
  American Indian                           ..         ..        ..       ..              ..        ..    -0.074*** (0.022)           ..       ..           ..       ..          ..         ..

Regional dummies                                   Yes                      No        Yes               Yes                              Yes                    No                  Yes
Surveys                                        1994, 2004               1992, 2004 1994, 2007       1997, 2007                        1995, 2003            1997, 2004           1999, 2004
Number of observations                            68 578                  96 133     17 877            78 266                           16 908                 6 136               52 708
Classification rate                              77.52%                  75.31%     70.81%            77.52%                           76.85%                77.95%               75.49%
Robust standard errors in parenthesis, * significant at 5%; ** significant at 1%.
Sources: OECD, Luxembourg Income Study (LIS), German Socioeconomic Panel and American Housing Survey.




S:\Data\SPAD1\Housing\Working papers\Drivers of homeownership rates in OECD countries\Annex2_AD.xlsx                                                                                                         TabD2b
                                                                                                                                                                 10/5/2012 9:32 AM



                                                   Table E1. Sample means for explanatory variables                                                                      Content


                                                          (1)                     (2)                    (3)                     (4)                 (5)
                                                         Austria                Finland                 Italy                   Spain            Switzerland
                                                1987               2004     1995       2004    1991             2004     1990           2004   1992       2004

Age of Household Head
 25-29 years                                      8.9               5.9      8.4       8.2      3.9              3.2      4.6            4.3   10.9       7.1
 30-34 years                                      9.1               9.4     10.0       7.5      8.5              6.1      8.7            9.8   10.5       9.8
 35-44 years                                     16.3              22.3     19.9      18.0     17.8             22.4     19.8           21.2   19.4      21.6
 45-64 years                                     29.8              35.3     33.5      37.0     39.5             34.6     40.2           35.9   28.9      36.1
 65 years and over                               32.9              24.6     23.2      23.7     31.4             34.5     27.4           29.4   25.3      24.0

Household structure
 Household Size                                   2.2               2.3      2.2       2.1      2.9              2.5      3.4            2.8    2.3       2.3
 H2: Couple with dependents                      22.0              23.2     24.0      20.3     32.0             24.3     43.8           29.0   24.6      23.1
 H3: Single without dependents                   44.4              40.4     41.1      42.1     25.7             34.8     17.8           25.6   39.3      36.3
 H4: Single with dependents                       4.9               4.4      5.0       4.4      2.4              2.3      3.1            3.0    3.9       2.8

Real Household Disposable Income
 Annual Income (units of national currency)     25 066             32 677   22 969   29 275    25 084           24 809   18 353     22 747     74 603   72 818

Education of household head
 Tertiary                                        5.1               12.4     22.6      28.8      6.5              8.9      9.1           21.4    5.5      12.4

Indicators of socio-economic disadvantage
  Disability (Household Head)                    ..          ..        20.6      16.9        5.0                 3.3       ..            ..     ..        ..
  Disability (Spouse of Household Head)          ..          ..        52.5      54.1        3.0                 1.5       ..            ..     ..        ..
  Ethnic minority                               4.2         6.4         5.2       5.3         ..                  ..       ..            ..     ..        ..
  Immigrant/Foreigner                            ..          ..          ..        ..        1.0                 4.5       ..            ..    19.2      20.8
Sources: OECD, Luxembourg Income Study (LIS), German Socioeconomic Panel and American Housing Survey.




S:\Data\SPAD1\Housing\Working papers\Drivers of homeownership rates in OECD countries\Annex2_AD.xlsx                                                                      TabE1a
                                                                                                                                                                                         10/5/2012 9:32 AM



                                                                 Table E1. Sample means for explanatory variables (continued)                                                                     Content


                                                     (1)               (2)                     (3)                     (4)              (5)                (6)               (7)
                                                   Canada            Denmark                 Germany              United States       Australia        Luxembourg      United Kingdom
                                               1994      2004     1992     2004           1994       2007       1997        2007   1995       2003   1997      2004    1999       2004

Age of Household Head
  25-29 years                                   9.6      8.5       10.2       7.9          9.5          7.3      8.5        8.1     8.3       7.8     7.4       4.9     7.4       6.6
  30-34 years                                  12.3      9.2        9.0       8.4         10.1          7.2     10.5        8.8    11.6      10.3    11.7       9.2     9.8       9.0
  35-44 years                                  23.2      22.7      17.6      18.8         17.0         21.0     23.6       19.9    22.0      21.7    22.8      22.8    18.9      21.2
  45-64 years                                  29.9      35.7      29.6      34.5         34.1         32.2     31.7       37.9    32.6      35.3    32.0      38.6    34.2      33.8
  65 years and over                            19.7      20.2      25.5      25.6         25.6         28.6     21.2       20.9    22.2      21.9    25.7      23.9    27.3      26.7

Household structure
  Household Size                                2.4      2.5        2.0       2.1          2.2          2.1      2.6        2.5     2.7       2.5     2.5       2.5     2.4       2.3
  Couple with dependents                       25.3      24.0      20.0      20.8         20.5         15.6       ..         ..    30.4      26.4    29.0      28.1    22.1      21.3
  Single without dependents                    38.0      37.1      45.4      43.1         44.9         50.4       ..         ..    31.0      32.7    34.1      32.7    34.6      34.9
  Single with dependents                        6.4      6.2        4.9       5.7          5.1          6.3       ..         ..     6.0       7.1     3.3       3.0     7.2       7.5
  Married                                        ..       ..         ..        ..           ..           ..     54.5       52.3      ..        ..      ..        ..      ..        ..
  Divorced, widowed, separated                   ..       ..         ..        ..           ..           ..     29.6       28.6      ..        ..      ..        ..      ..        ..

Real Household Disposable Income
  Annual Income (units of national currency)   44 416   50 667   221 480    275 810      27 754        27 952   56 594    66 018   39 714   44 591   45 678   55 371   20 578   24 609

Education of household head
  Secondary                                    35.3      26.6       ..        ..          60.8         61.3     30.2       27.7     ..        ..       ..        ..     ..        ..
  Associate                                    35.4      44.4       ..        ..           8.8         10.5     26.7       28.5    34.4      35.7     6.4       3.8     ..        ..
  Tertiary                                     15.2      19.9      10.7      16.5         13.8         20.8     24.8       29.0    12.1      16.9    17.7      22.1    15.9      19.1

Indicators of socio-economic disadvantage
  Disability (Household Head)                   3.1      27.2       ..         ..         15.5         15.9       ..         ..      ..       ..      ..        ..     35.5      33.1
  Disability (Spouse of Household Head)         1.0      14.0       ..         ..          ..           ..        ..         ..      ..       ..      ..        ..     56.9      57.7
  Ethnic minority                                ..       ..        ..         ..          ..           ..        ..         ..      ..       ..      ..        ..      5.3       7.4
  Immigrant/Foreigner                            ..       ..       2.9        6.7          ..           ..        ..         ..      ..       ..     28.0      35.3      ..        ..
  Non-English Speaking Background                ..       ..        ..         ..          ..           ..        ..         ..     6.7      16.6     ..        ..       ..        ..
  African American                               ..       ..        ..         ..          ..           ..      12.1       12.8      ..       ..      ..        ..       ..        ..
  Hispanic                                       ..       ..        ..         ..          ..           ..       8.5       11.4      ..       ..      ..        ..       ..        ..
  Asian                                          ..       ..        ..         ..          ..           ..       2.8        3.6      ..       ..      ..        ..       ..        ..
  American Indian                                ..       ..        ..         ..          ..           ..       0.6        1.5      ..       ..      ..        ..       ..        ..

Sources: OECD, Luxembourg Income Study (LIS), German Socioeconomic Panel and American Housing Survey.




S:\Data\SPAD1\Housing\Working papers\Drivers of homeownership rates in OECD countries\Annex2_AD.xlsx                                                                                              TabE1b
                                                                                                                                                                                                                                    10/5/2012 9:32 AM




                                                Figure F1. Detailed decompositions – countries with rising homeownership rates                                                                                         Content

                                                                              Fairlie non-linear decomposition                                                                                                                             Usa
                                                                                                                                                                                                                                           1997-2008
                                         United States                                                                                             Germany
                                          1997-2008                                                                                                1994-2007                                                Socio-economic                      -0.608
                                                                                                                                                                                                            Education                            0.172
          Actual                                                                                           Actual                                                                                           Income                               0.754
                                                                                                                                                                                                            Household size                       -0.47
    Unexplained                                                                                      Unexplained                                                                                            Age structure                        0.757
                                                                                                                                                                                                            Total explained                  0.646506
 Total explained                                                                                  Total explained
                                                                                                                                                                                                            Unexplained                      1.811584
   Of which:                                                                                         Of which:
  Age structure                                                                                     Age structure
                                                                                                                                                                                                            Actual                            2.45809
                                                                                                                                                                                                                                         Deu
 Household size                                                                                   Household size                                                                                                                         1994-2007
  and structure                                                                                    and structure
                                                                                                                                                                                                            Regional effect                   0.62866
         Income                                                                                          Income                                                                                             Socio-economic disadvantage          0.004
                                                                                                                                                                                                            Education                            0.167
      Education                                                                                        Education                                                                                            Income                               0.184
 Socio-economic                                                                                   Socio-economic                                                                                            Household size and structure        -1.072
  disadvantage                                                                                     disadvantage                                                                                             Age structure                        1.103
                                                                                                  Regional effect
                                                                                                                                                                                                            Total explained                  0.876416
                                                                                                                                                                                                            Unexplained                      3.460491
                   -1            0                    1               2                       3                     -2       -1           0               1           2           3         4           5   Actual                           4.336907
                                                                          Percentage points                                                                                           Percentage points
                                                                                                                                                                                                                                         Ita
                                                                                                                                                                                                                                         1991-2004
                                            Italy                                                                                               Switzerland
                                          1991-2004                                                                                              1992-2004                                                  Socio-economic disadvantage       -0.94875
                                                                                                                                                                                                            Education                          0.09679
          Actual                                                                                           Actual                                                                                           Income                            -0.31405
                                                                                                                                                                                                            Household size and structure      -0.80824
    Unexplained                                                                                      Unexplained                                                                                            Age structure                       0.4548
                                                                                                                                                                                                            Total explained                  -1.453137
 Total explained                                                                                  Total explained
    Of which:                                                                                                                                                                                               Unexplained                       5.151525
                                                                                                     Of which:
   Age structure                                                                                                                                                                                            Actual                            3.698388
                                                                                                   Age structure
                                                                                                                                                                                                                                           Che
 Household size                                                                                   Household size                                                                                                                           1992-2004
  and structure                                                                                    and structure
         Income                                                                                          Income                                                                                             Socio-economic disadvantage      -0.28749
                                                                                                                                                                                                            Education                         0.12302
      Education                                                                                        Education                                                                                            Income                           -0.15153
Socio-economic                                                                                    Socio-economic
                                                                                                                                                                                                            Household size and structure     -0.36657
 disadvantage                                                                                      disadvantage                                                                                             Age structure                     2.00259
                                                                                                                                                                                                            Total explained                  0.972721
                                                                                                                                                                                                            Unexplained                      4.177599
                   -2   -1       0          1         2       3       4          5          6                       -1       0            1               2       3               4         5           6   Actual                            5.15032
                                                                          Percentage points                                                                                           Percentage points


                                           Austria                                                                                                  Canada                                                                                 Aut
                                          1987-2004                                                                                                1994-2004                                                                               1987-2004

          Actual                                                                                           Actual                                                                                           Socio-economic disadvantage       -0.45123
                                                                                                                                                                                                            Education                         -0.11919
    Unexplained                                                                                      Unexplained                                                                                            Income                             3.06275
                                                                                                                                                                                                            Household size and structure       1.24039
 Total explained                                                                                  Total explained
                                                                                                                                                                                                            Age structure                      0.34538
   Of which:                                                                                         Of which:
  Age structure                                                                                     Age structure
                                                                                                                                                                                                            Total explained                   3.672821
                                                                                                                                                                                                            Unexplained                       1.651205
 Household size                                                                                   Household size                                                                                            Actual                            5.324026
  and structure                                                                                    and structure
                                                                                                                                                                                                                                           Can
         Income                                                                                          Income                                                                                                                            1994-2004

      Education                                                                                        Education                                                                                            Socio-economic disadvantage       -0.94562
 Socio-economic                                                                                   Socio-economic                                                                                            Education                         0.383575
  disadvantage                                                                                     disadvantage                                                                                             Income                             1.69999
                                                                                                                                                                                                            Household size and structure       0.44939
                                                                                                                                                                                                            Age structure                      1.16347
                   -1        0       1          2         3       4             5           6                       -1   0            1        2              3   4           5       6       7         8   Total explained                   2.446575
                                                                          Percentage points                                                                                           Percentage points
                                                                                                                                                                                                            Unexplained                       5.073199
                                                                                                                                                                                                            Actual                            7.519774
                                            Spain                                                                                             United Kingdom                                                                               Esp
                                          1990-2004                                                                                              1999-2004                                                                                 1990-2004
                                                                                                                                                                                                            Regional effect                  -0.054689
         Actual                                                                                            Actual
                                                                                                                                                                                                            Education                         -0.14194
   Unexplained                                                                                       Unexplained                                                                                            Income                             1.63188
                                                                                                                                                                                                            Household size and structure      -0.36462
Total explained                                                                                   Total explained
    Of which:                                                                                                                                                                                               Age structure                     -0.00777
                                                                                                     Of which:
  Age structure                                                                                                                                                                                             Total explained                   0.840196
                                                                                                   Age structure
                                                                                                                                                                                                            Unexplained                       4.733236
Household size                                                                                    Household size                                                                                            Actual                            5.573432
 and structure                                                                                     and structure
                                                                                                                                                                                                                                           Gbr
        Income                                                                                           Income                                                                                                                            1999-2004

      Education                                                                                        Education                                                                                            Socio-economic disadvantage      -0.08215
                                                                                                  Socio-economic
                                                                                                                                                                                                            Education                         0.50173
                                                                                                   disadvantage                                                                                             Income                            1.29529
 Regional effect                                                                                                                                                                                            Household size and structure      0.21919
                                                                                                                                                                                                            Age structure                     0.57486
                   -1    0           1          2         3       4             5           6                       -1            0                   1                   2            3                4   Total explained                  2.482376
                                                                          Percentage points                                                                                           Percentage points     Unexplained                      0.694086
                                                                                                                                                                                                            Actual                           3.176462
 Source: OECD calculations based on Luxembourg Income Study (LIS), GSOEP and the American Housing Survey.




S:\Data\SPAD1\Housing\Working papers\Drivers of homeownership rates in OECD countries\Annex2_AD.xlsx                                                                                                                                             FigF1
                                                                                                                                                                                                              10/5/2012 9:32 AM




                                          Figure F2. Detailed decompositions – countries stable or declining homeownership rates                                                                  Content
                                                                                Fairlie non-linear decomposition                                                                                                       Aus
                                                                                                                                                                                                                       1995-2003
                                         Australia                                                                                       Luxembourg
                                         1995-2003                                                                                        1997-2004                                     Socio-economic disadvantage      -0.32478
                                                                                                                                                                                        Education                         0.23293
           Actual                                                                                          Actual                                                                       Income                            0.83716
                                                                                                                                                                                        Household size and structure     -0.68202
    Unexplained                                                                                      Unexplained                                                                        Age structure                     0.54438
                                                                                                                                                                                        Total explained                  0.626388
  Total explained                                                                                  Total explained
                                                                                                                                                                                        Unexplained                     -2.525065
    Of which:                                                                                        Of which:
   Age structure                                                                                    Age structure
                                                                                                                                                                                        Actual                          -1.898677
                                                                                                                                                                                                                       Lux
  Household size                                                                                  Household size                                                                                                       1997-2004
   and structure                                                                                   and structure

          Income                                                                                          Income                                                                        Socio-economic disadvantage      -2.02621
                                                                                                                                                                                        Education                        -0.30462
       Education                                                                                        Education                                                                       Income                            1.81788
 Socio-economic                                                                                   Socio-economic                                                                        Household size and structure     -0.06402
  disadvantage                                                                                     disadvantage                                                                         Age structure                     0.53409
                                                                                                                                                                                        Total explained                 -0.107663
                                                                                                                                                                                        Unexplained                     -2.185733
                    -3             -2                -1               0                       1                      -3        -2           -1            0        1                2   Actual                          -2.293396
                                                                          Percentage points                                                                       Percentage points
                                                                                                                                                                                                                       Dnk
                                                                                                                                                                                                                       1992-2004
                                         Denmark                                                                                           Finland
                                         1992-2004                                                                                        1995-2004                                     Socio-economic disadvantage      -0.69427
                                                                                                                                                                                        Education                         0.38943
          Actual                                                                                           Actual                                                                       Income                            4.44736
                                                                                                                                                                                        Household size and structure        0.1901
    Unexplained                                                                                      Unexplained                                                                        Age structure                     1.36098
                                                                                                                                                                                        Total explained                  5.256402
  Total explained                                                                                  Total explained
     Of which:                                                                                                                                                                          Unexplained                     -4.753799
                                                                                                      Of which:
   Age structure                                                                                                                                                                        Actual                           0.502603
                                                                                                    Age structure
                                                                                                                                                                                                                       Fin
  Household size                                                                                  Household size                                                                                                       1995-2004
   and structure                                                                                   and structure
                                                                                                                                                                                        Regional effect                    -0.4429
         Income                                                                                           Income                                                                        Socio-economic disadvantage
                                                                                                                                                                                        Education                        0.26745
       Education                                                                                        Education                                                                       Income                           4.26274
 Socio-economic                                                                                   Socio-economic
                                                                                                                                                                                        Household size and structure    -0.11078
  disadvantage                                                                                     disadvantage                                                                         Age structure                    0.81394
                                                                                                                                                                                        Total explained                 4.706624
                                                                                                   Regional effect
                                                                                                                                                                                        Unexplained                    -4.139977
                    -5   -4   -3    -2   -1    0          1   2   3          4      5       6                        -5   -4   -3   -2      -1        0   1   2    3       4        5   Actual                          0.566647
                                                                          Percentage points                                                                       Percentage points


 Source: OECD calculations based on Luxembourg Income Study (LIS).




S:\Data\SPAD1\Housing\Working papers\Drivers of homeownership rates in OECD countries\Annex2_AD.xlsx                                                                                                                          FigF2

				
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