Private wealth transfers and homeownership: evidence from Luxembourg

This paper investigates the impact of private wealth transfers, such as gifts and inheritances, on the probability of homeownership in Luxembourg. Using detailed household survey data, we find a significant positive relationship between the size of wealth transfers and homeownership. Specifically, wealth transfers exceeding €100,000 increase the likelihood of homeownership by over 10% points. In contrast, smaller transfers have no statistically significant positive effect. Furthermore, many recipients of large transfers tend to purchase homes shortly after receiving the funds, indicating a strong temporal link between the transfer event and homeownership decisions.