Do Home Prices Affect the Birds and the Bees?

October 14, 2011 in Daily Bulletin

Researchers at the University of Maryland found that higher home prices lead to an increase in the number of births in a home. Some of the more interesting points include:

  • Researchers estimate that a 10% increase in house prices would lead to a 4% increase in births
  • While the paper does not include data from 2008 onwards, it should be noted that housing prices dropped 18% in 2008 while birth rates fell by 2%
  • With the continued uncertainty in the housing markets, America’s fertility may continue to fall.

To find out how the effect varies by ethnicity read the paper here.

Source: NBER

Via: Freakonomics