Housing Expenditure and Births in Italy

Housing is a fundamental determinant of individual and household well-being. In fertility research, its role has traditionally been examined through homeownership, yet the impact of housing expenditure—including mortgage payments, rent, bills, and maintenance expenses—remains underexplored. This study extends the literature by analyzing the relationship between housing expenditure and childbearing in Italy. Using data from the Bank of Italy's Survey on Household Income and Wealth (1998–2016), we uncover two key findings. First, higher housing expenditure is positively associated with childbearing, but only among homeowners, not tenants. This suggests that property ownership and improved housing conditions are perceived as essential prerequisites for parenthood in Italy. Second, this relationship holds exclusively for wealthier households—those who can sustain both higher housing costs and the financial demands of raising children. Our findings contribute to the growing literature on the increasing prerequisites for parenthood, underscoring the relevance of housing prerequisites. Homeownership—even if it leads to a financial burden—represents a crucial milestone in the childbearing process, at least in Italy.