Research

Working Papers

The Dynamics of Co-Residence, Wealth, and Family Formation (JMP)

It has been increasingly common for adult children to live in their parents’ home. This paper studies the causes and consequences of co-residence from the perspective of young adults. There are three main results. First, event studies indicate that household finances are surprisingly disconnected from co-residence changes. Second, marriage and fertility correlate strongly with housing independence. Third, plausibly exogenous rental housing unaffordability estimates only modestly affect co-residence. These findings should inform structural work and forecasts of housing demand.

Parental Co-Residence and Asset Accumulation

This paper develops and solves a model to examine how young adults’ savings decisions are affected by co-residence and student loan payments. Co-residence is typically chosen by individuals are younger and have lower incomes, making it more challenging for them to save compared to those who do not co-reside. Additionally, young adults are more likely to co-reside when housing costs are high and their preference for independent living is low. The model predicts that without the obligation of rental payments, extra savings during co-residence are used to pay off student loans.

Works in Progress

Parental Co-Residence and Marital Transitions (In Progress)

A structural model is built to examine the relationship between parental co-residence and marriage timing. I study how living arrangements may delay marriage, incorporating housing costs, preferences for independence, and match quality.