Government policies often encourage homeownership as an effective way of building assets and a de facto self-insurance mechanism for old-age security. In the wake of the Great Recession, however, the homeownership rate in the United States has been declining. It may not rebound to its pre-recession peak in the foreseeable future, and it could decline even further. This project compares the United States and 10 European countries to understand the role of homeownership in retirement security, vis-à-vis public and private pensions, and savings. Using panel data from the Health and Retirement Study and the Survey of Health, Ageing, and Retirement in Europe, it explores trends in homeownership among older adults in different countries, both before and following the Great Recession, and examines how the link between homeownership and old-age financial security differs across these countries. The results show that homeownership rate in the United States (64%) is lower than in Southern European countries, and similar or higher compared to Northern and continental European countries. However, older persons in Southern Europe are much less likely than older Americans to tap into housing equity to support their standard of living in retirement. Unlike the United States, European countries have generally not experienced a substantial change in homeownership rates during and following the recent recession, regardless of the difference in the severity of the economic crisis across countries. A notable exception is population of lower socioeconomic status. The study concludes with a critical comparison of homeownership-related policies in the United States and Europe.
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