Speaker: Natascha Jankowski, University of Konstanz
Title: Impact of Marriage and Homeownership Timing on Financial Wealth
Abstract: Using a quantitative life cycle model of endogenous consumption, savings, housing, and marriage market choices, we investigate the impact of marriage and housing market entry timing on financial wealth. Our results show that individuals who enter the housing market before marriage accumulate more total savings, live in less valuable houses and have higher loan-to-value ratios before marriage but live in more valuable houses and have lower loan-to-value ratios shortly after marriage. However, they have significantly lower consumption levels over the life cycle. Our results can have important implications for designing policies that facilitate individuals’ housing market entry given the changing demographics of first-time homebuyers.