Rising Home Prices Linked To More Babies
Gregoryj77 via Wikimedia Commons As housing prices rise, non-owners (e.g. renters) tend to have fewer kids. A new study found that for every $10,000 rise in house prices, the fertility rate of non-owners subsequently drops by 2.4 percent on average, in urban areas throughout the U.S. (Now I have an excuse the next time my parents make insinuations about "grandkids.") Perhaps unexpectedly, though, the opposite was seen with homeowners, whose fertility goes up with home prices. For every $10,000 increase in housing prices from 1997 to 2006, owners' fertility rates rose on average 5 percent. This is partially explained by the rising equity of the home; though home equity is basically illiquid, one can extract equity from it via loans, like a second mortgage, to help pay for raising a child, the authors write. The study suggests that "house prices are a relevant factor in a couple's decision to have a baby," which...