A recent study9 by the Urban Institute found that between 2007 and 2012 birth rates among women in their twenties declined by more than 15 percent.
The drop was, in part, caused by the decline in the rate of marriage. This doesn't necessarily suggest that either the marriage rate or birth rates won't increase as Millennia ls choose to have children at a later age, but it does delay the decision to buy a home.
In our analysis, we find that just as the decision to marry influences the decision to own, so does the decision to have children. As one might suspect, the more children in a household, the more likely the decision to own versus rent. The homeownership rate is 1.7 percent higher for households with one or two children compared to households with no children, and it is 5.4 percent higher for households with three or more children.
In 2016, the homeownership rate improved slightly as Millennials began to settle down and form families.
Figure 4. More Children, More Homeowner
Year-Over-Year Change in Homeownership Rate (%, 3 or More Children)
This doesn't mean the desire for homeownership is g one . In fact, a case could be made that policies that encourage marriage and having children would increase homeownership. Yet, that may not be necessary. As Millennials age, we may see an increase in the share of married households with children, and a corresponding increase in homeownership demand.
To access the full study, please download it from the First American Economic Center Blog. When you need real estate and