18.10.2011 - Will the housing bust produce a baby bust?
The research naturally leads one to wonder about the impact of the housing bust on family-size decisions (the study only considers data through 2006). Homeowners experienced a dramatic drop in housing wealth as prices fell, presumably placing a chill on the demand for additional children. On the other hand, non-owners may see that their money is likely to buy a lot more home in the future, and therefore a lot more room for new kids. But as the authors indicate, the credit-market effect is important. If buyers are less able to translate rising housing wealth into cash, thanks to stricter home-equity loan rules, then the relationship between home prices and fertility may weaken..............................................Full Article: Source
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