Housing Consumption Over the Family Life Cycle: an Empirical Analysis

Abstract

The family life cycle has long been an important element in the analysis of household consumption and earnings patterns. Housing studies have, however, given surprisingly little attention to the concept. Using a sample of recent house purchasers from Perth, Western Australia, this paper analyses the pattern of housing consumption and location over the family life cycle, together with the financial position of the household. The results indicate that marriage-partnering and initial schooling are the significant stages. Contrary to some recent work, we find clear evidence of reduced space consumption once child rearing is completed and for the presence of income constraints within life cycle stages. Wealth and income are found to be more important in explaining housing consumption than the family life cycle concept.

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