Alexander Daminger

Homeowner Subsidies and Suburban Living: Empirical Evidence from a Subsidy Repeal

Rubrik: Articles
FinanzArchiv (FA)

Jahrgang 79 () / Heft 2, S. 111-145 (35)
Publiziert 28.07.2023

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To show how homeownership subsidies influence the distribution of population across space, I exploit the 2005 repeal of a lump-sum real estate purchase subsidy in Germany. Using administrative data on population in local labor markets and IV-estimations in difference-in-differences and triple differences frameworks, I find that repealing subsidies to homeownership recentralizes regions. The effect is likely driven by families with children and young residents of »building-age« who no longer become homeowners in the periphery. These results help inform our understanding of the spatial impacts of subsidizing homeownership.

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