This article examines the relationship between household compositions and housing expenditures in rental-occupied and owner-occupied markets. The author finds that renters allocate their budget proportionately between housing and nonhousing goods for an additional household member, leaving the budget share of housing expenditures unchanged. For homeowners, nevertheless, an extra member implies a reduction in housing expenditures as a share of total budget. Although age and gender compositions turn out to be significant in determining the budget share of housing expenditures for renters, they play no major role for homeowners. And although an increase in the number of working members for renters significantly reduces the share of budget spent on housing, it has no significant impact for their owner counterparts. Moreover, keeping total expenditures constant, the main income source of the head of the household does not make any difference in terms of resource allocation across housing and nonhousing goods for both renters and owners.
History
Journal
Family and consumer sciences research journal
Volume
36
Pagination
189 - 207
Location
Hoboken, N.J.
ISSN
1077-727X
Language
eng
Publication classification
C1.1 Refereed article in a scholarly journal
Copyright notice
2008, American Association of Family and Consumer Sciences