Macroeconomics seminar: Homeownership and portfolio choice over the generations

Dr Gonzalo Paz-Pardo, European Central Bank

'Homeownership and Portfolio Choice over the Generations'
Thursday 2 December, 3pm - 4.30pm
Zoom online seminar

Register here


Earnings are riskier and more unequal for households born in the 1960s and 1980s than for those born in the 1940s. Despite the improvements in financial conditions, younger generations are less likely to be living in their own homes than older generations at the same age. By using a life-cycle model with housing and portfolio choice that includes flexible earnings risk and aggregate asset price risk, I show that changes in earnings dynamics account for a large part of the reduction in homeownership across generations. Lower-income households find it harder to buy housing, and as a result accumulate less wealth.


Gonzalo Paz-Pardo is a Senior Economist at DG-Research in the European Central Bank. His research focuses on household consumption and savings, earnings dynamics, housing and homeownership, and portfolio choices, with particular interest in income and wealth inequality. He holds an Economics PhD from University College London.

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First published: 16 November 2021