Socio-demographic Variations of Homeowners and Differential Effects of Parental Homeownership on Offspring's Housing Tenure

Previous research indicates a positive effect of parental homeownership on offspring's homeownership, but rarely tests whether the effect is due to self-selectivity. In the context of socio-demographic variations of American homeowners, this study extends previous research by examining the differential effects of parental ownership of a single-family home. The current study employs the Panel Studies of Income Dynamics data, using propensity score matching to address self-selection problems. The results suggest that the intergenerational effect of parental housing tenure has been differentiated by race, income and the housing tenure history of parents while reinforcing inequality. Even within the same housing tenure, offspring of socio-economically disadvantaged groups are less likely to take advantage of parental homeownership in attaining a single-family owner-occupied home.