The relationship between household’s risk preference and the homeownership decisions among young adults in changing housing market conditions

K-REx Repository

Show simple item record

dc.contributor.author Le, Vien C.
dc.date.accessioned 2018-04-06T13:36:32Z
dc.date.available 2018-04-06T13:36:32Z
dc.date.issued 2018-05-01 en_US
dc.identifier.uri http://hdl.handle.net/2097/38751
dc.description.abstract For many decades, the American Dream of homeownership has been a source of pride and one of the traditional ways to improve financial and non-financial well-being for American households. However, during the recent housing crisis, millions of homeowners lost their homes or experienced negative home equity due to job loss, reductions in work hours, or a decline in home values. The recent housing crisis made many individuals and families rethink their American Dream. As with most investments, there are some risks associated with owning a home, especially when housing markets are volatile and the economy is uncertain. Understanding the relationship between household’s risk preference and homeownership decisions may help households make better and more informed decisions regarding their housing tenure choice. This study investigates the relationship between household’s risk preference and homeownership decisions among young adults made during the stability in the housing market, which occurred around 1993, and during the decline in the housing market, which occurred around 2010. This study also examined demographic and economic characteristics of homeowners during those periods. Two separate datasets from the National Longitudinal Study of Youth 1979 and the National Longitudinal Study of Youth 1997 were utilized to address research questions and research hypotheses under the lens of the expected utility theory. The results showed shifts in household’s rick preferences, homeownership rates, and demographic and economic characteristics between periods. Compared to households who preferred lowest risk level, households who preferred highest risk level were more likely to own a home in both periods. The relationships between household’s risk preference and homeownership decisions did not change between periods. However, some relationships between household’s demographic and economic characteristics and homeownership decisions changed between periods. The findings of this study have several important implications for potential homebuyers, lenders, and personal financial planning practitioners. Household’s risk preference, as well as demographic and economic characteristics, should be considered during the home purchase process. The findings also expand the literature on expected utility theory, household’s risk preference, and homeownership research areas. en_US
dc.language.iso en_US en_US
dc.publisher Kansas State University en
dc.subject Risk preference en_US
dc.subject Risk tolerance en_US
dc.subject Homeownership en_US
dc.subject Home ownership en_US
dc.subject Homeownership decisions en_US
dc.subject Housing market en_US
dc.title The relationship between household’s risk preference and the homeownership decisions among young adults in changing housing market conditions en_US
dc.type Dissertation en_US
dc.description.degree Doctor of Philosophy en_US
dc.description.level Doctoral en_US
dc.description.department School of Family Studies and Human Services en_US
dc.description.advisor Martin Seay en_US
dc.date.published 2018 en_US
dc.date.graduationmonth May en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search K-REx


Browse

My Account

Statistics








Center for the

Advancement of Digital

Scholarship

cads@k-state.edu