Do Homeowners Have Higher Future Household Income?

Using longitudinal data from the Panel Study of Income Dynamics (PSID) between 1984 and 2001 among only renter households in 1984, this paper looks at the relationship between length of homeownership thereafter during that period and household income in 2001. The study found that the longer the period of homeownership during the studied period, the higher future household income was by 2001. It is estimated that each year of ownership is associated with approximately 2 per cent of increase in household income and doubling the length of ownership increases household income by about 11 per cent.