Housing Expenditure and Childbirth in the United Kingdom

Previous literature looking at regional property prices found higher housing costs reduce affordability and are negatively associated with childbirth. On the other hand, (soon-to-be) parents are often willing to pay more to get better quality housing to pursue fertility desires. Thus, the relationship at the micro level incorporates both affordability and the willingness to pay. The objective of this study is to examine the relationship between micro level housing expenditure and the likelihood of first, second, and third birth in the United Kingdom (UK). This paper finds that higher housing expenditure is positively associated with childbirth across birth order. In parallel, a higher housing share of income is negatively associated with childbirth. These results suggest that couples anticipating childbirth are willing to pay larger amounts to pursue their fertility desires. Simultaneously, a higher share of household income going to housing reduces affordability, making having a(nother) child unfeasible. Using household level housing costs illuminates the affordability/willingness to pay trade-off. The relationship is stronger in households in which women are not in paid work. This indicates that women’s labor market participation is intertwined with housing costs and childbirth.