Determinants of Canadian Headship Rates

This article shows how regional differences in household formation relate to differences in income and housing prices. It presents an assessment of the effect of housing prices and income expectations on household formation decisions. Gender differences are revealed. Differences between spatial and temporal variation in headship rate changes are illustrated, along with the inappropriateness of using coefficients obtained through cross-sectional analysis in forecasting exercises or impact assessments. Normative conclusions are developed.