Jascha Dräger, Nora Müller, Klaus Pforr: The keys to the house - How wealth transfers stratify homeownership opportunities, Social Science Research, Volume 129, 2025, 103190, ISSN 0049-089X.
https://doi.org/10.1016/j.ssresearch.2025.103190
Why is it easier for some people to buy a home, while others remain shut out despite working hard? A new study sheds light on a crucial but often overlooked factor: intergenerational wealth transfers –namely inheritances, financial gifts, and even the expectation of receiving them.
Drawing on data from the German Socio-Economic Panel (SOEP), the study shows that individuals from higher-status families are significantly more likely to become homeowners than those whose parents worked in manual or service occupations. That finding isn’t new – but the role that family wealth transfers play in shaping this divide is.
The authors analyze both actual and expected transfers and demonstrate that both substantially increase the likelihood of purchasing a home. Gifts received in the same year as a property purchase have the strongest effect. But even the expectation of a future inheritance matters: those who anticipate receiving wealth are more willing to take on long-term financial commitments, such as a mortgage.
All in all, family gifts and inheritances – both actual and expected – help explain up to half of the differences in who ends up owning a home, depending on their parents' social background. Early gifts have the greatest impact – often coinciding with key life events such as marriage or starting a family.
Yet wealth is not the only factor. Income, education, and family circumstances also explain large parts of the inequality. Still, parental support remains a key influence – raising important questions about equality of opportunity.