TY - UNPB
T1 - Going solo or waiting for love? Relationship and housing choices in a life cycle model
AU - Jankowski, Natascha
AU - Koch, Marlene
PY - 2025/6/3
Y1 - 2025/6/3
N2 - Using a quantitative life cycle model of optimal consumption, savings, housing, and relationship decisions, we investigate how capital, housing, and labor market conditions influence the timing of individuals' relationship and housing choices. We find that capital and labor market returns significantly impact whether individuals should go solo in the housing market or wait for love and buy when in a relationship. Moreover, we show that entering the housing market as a single or in a relationship leads to substantially different life cycle profiles of wealth, consumption, asset allocation, and housing. These differences arise because single individuals and those in a relationship experience capital and housing market returns differently.
AB - Using a quantitative life cycle model of optimal consumption, savings, housing, and relationship decisions, we investigate how capital, housing, and labor market conditions influence the timing of individuals' relationship and housing choices. We find that capital and labor market returns significantly impact whether individuals should go solo in the housing market or wait for love and buy when in a relationship. Moreover, we show that entering the housing market as a single or in a relationship leads to substantially different life cycle profiles of wealth, consumption, asset allocation, and housing. These differences arise because single individuals and those in a relationship experience capital and housing market returns differently.
KW - endogenous housing and relationship decisions
KW - life cycle model
KW - long-term financial decision making
KW - portfolio choice
KW - financial market returns
U2 - 10.2139/ssrn.5280132
DO - 10.2139/ssrn.5280132
M3 - Working paper
T3 - SSRN Working papers
BT - Going solo or waiting for love? Relationship and housing choices in a life cycle model
PB - SSRN
ER -