2013 Conference

Financial Services

Homeownership represents one of the most common financial aspirations of households in the United States. There are several factors that influence the decision of becoming a homeowner, among those several benefits that compensate for the cost of homeownership. Numerous studies highlight the advantages of homeownership (Glaeser & Sacerdote, 2000; Glaeser & Shapiro, 2003). Tax benefits and savings are undoubtedly key incentives in the home buying decision (Dietz, 2009). Taxpayers, mainly those in higher tax brackets, can greatly benefit from homeownership as this may represent a tax shelter. Thus, in this proposed research study, we want to explore the positive relationship of marginal tax rate and income on the decision of buying a home.