The Research About The Cultural Norms Effect And The Difference Of Home Ownership Rate

Housing income is an important part of national income, is influenced by an individual’s housing tenure choice in the micro level, and depends on the factors such as economy, society and population from the macro level. And as the home ownership rate is quite different between developing countries and the developed countries,different stages of development and national conditions make clear difference values,so people in different culture may have different housing purchase behavior characteristics. In this paper, from the perspective of neighborhood effects and family cognitive effects,we explain the mechanism of action that cultural norms effect to the home ownership rate, and the characteristics of the Confucian culture show it’s the performance of cultural norms effect, and then it explains the mechanism of the influence of Confucian culture. Then we use the 27 countries(regions) of the world’s major culture in 1990-2014 as panel data, and make the neighborhood effects and family cognitive effects as the substitution variable of cultural norms effect, using the method of OLS to explain the relationships between cultural norms effects and the home ownership rate, so it is with the circle of Confucian culture, and further using the method of GMM to estimate the science and robustness of conclusion, and confirmed.The results show that: Once the neighborhood effect is the stronger, the home ownership rate will be higher; Once the family cognitive effect turning stronger, the home ownership rate will be higher, too. The effect of cultural norms have significant positive effects on home ownership rate; Confucian culture also has an positive influence on the home ownership rate, with the influence of cultural norms effect, the Confucian culture countries has the higher home ownership rate. This conclusion provides a reliable theoretical and empirical support to explain China’s high home ownership rate, even the Confucian culture, and this paper also provide some advises for families, firms and the government.