The Effect of the Price of Housing on Child and Young Adult Achievement

Unprecedented swings in the real price of owner-occupied housing may have affected child development. We merge longitudinal data on child and young adult outcomes with information on local house prices and market rents, and analyze both the short- and long-term effects of the price of housing experienced during childhood. The results indicate that the price of owner-occupied housing has a small negative effect on children’s mathematical achievement, but no consistent impact on reading achievement, behavior problems, or a child’s body mass index. A higher average price of housing experienced during childhood has a negative effect on the wage rate of young adults, consistent with the negative effect on childhood mathematical achievement.