Erosion of Intergenerational Mobility: A Case Study on Housing Affordability in Massachusetts

Presenter

Kenny Jaemin Yi

Campus

Framingham State University

Sponsor

Laura Lamontagne, Department of Accounting, Economics, and Finance, Framingham State University

Schedule

Session 1, 10:30 AM - 11:15 AM [Schedule by Time][Poster Grid for Time/Location]

Location

Poster Board C5, Poster Showcase Room (163), Row 1 (C1-C10) [Poster Location Map]

Abstract

Intergenerational mobility has been on the decline over the past 50 years. The decline in mobility could have widespread implications for future generations, which may include increased poverty rates, lower education levels, low or delayed fertility rates, higher rates of renting, and lower homeownership rates. In our analysis we compare and evaluate data sets from the US Census, Bureau of Labor Statistics, real estate sales listings, and FRED alongside published academic literature to locate patterns in house prices, income levels, and mobility factors measured over time and within certain age groups with a particular focus on the impact of the COVID-19 pandemic. Historically, home ownership has been a means of generating upward mobility and solidifying the middle class. With housing prices at an all time high, it is predicted that the increase in housing price to income ratio will further dampen the upward mobility of younger generations. This issue is particularly prevalent in a high cost of living state such as Massachusetts. From our results we can conclude that intergenerational mobility has seen a decrease in the context of housing affordability in the state of Massachusetts.

Keywords

Housing Market , Affordable Housing, Cost Of Living, Mobility of younger generation

Research Area

Business & Economics

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