TENURE CHOICE IN THE GERMAN HOUSING MARKET: A COMPETING RISKS MODEL

ABSTRACT An analysis of tenure choice by German households using the German socio‐economic panel (GSOEP) shows that even though there is a general tendency for an increase in homeownership in Germany there are quite different choice patterns than in other European countries and in North America. The process of choosing ownership is more gradual across the income range, occurs at later ages and couples are much less likely to become owners than in the Netherlands and the United States for example. The two most important findings are that specific changes in household composition do not trigger tenure changes in the same way as in North America and that housing market characteristics, especially for families, are much less important in affecting the ownership transition than in the Netherlands and the United States.