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Press Release

Cleveland Fed research examines factors behind the decline in homeownership among younger generations

Rates of US homeownership have declined in the past two decades, and the decline has been especially pronounced for young adults. In this Economic Commentary, Rawley Heimer and Nicholas Fritsch explore whether the negative homeownership experiences of parents during the 2008 financial crisis could have caused their children to view homeownership less favorably. They found that the children of parents who experienced mortgage distress were indeed less likely to become homeowners themselves.

“The negative correlation between parental distress and the homeownership rates of their children suggests that children of parents who have had negative experiences during the housing crisis develop negative views toward homeownership,” say the researchers. The researchers note that there are other plausible explanations for this finding, including inherited financial habits, and they seek to disentangle some of these explanations.

Read more here: Intergenerational Homeownership and Mortgage Distress

Federal Reserve Bank of Cleveland

The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that along with the Board of Governors in Washington DC comprise the Federal Reserve System. Part of the US central bank, the Cleveland Fed participates in the formulation of our nation’s monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations System-wide. In addition, the Bank supports the well-being of communities across the Fourth Federal Reserve District through a wide array of research, outreach, and educational activities.

The Cleveland Fed, with branches in Cincinnati and Pittsburgh, serves an area that comprises Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia.

Media contact

Doug Campbell,, 513.455.4479