The political economy of homeownership: a comparative analysis of homeownership ideology through party manifestos

Abstract

Abstract America’s ‘infatuation with homeownership’ has been identified as one cause of the latest financial crisis. Based on codings of 1809 party manifestos in 19 countries since 1945, this article addresses the question of where the political ideal to democratize homeownership came from. While conservative parties have defended homeownership across countries and time, centre-left parties have oscillated between a pro-homeownership and a pro-rental position. The former occurs in Anglo-Saxon, Northern and Southern European countries, while the latter prevails among German-speaking countries. Beyond partisan effects, once a country has a majority of homeowners and parties defending homeownership, larger parties are more likely to support it. The extent of centre-left parties’ support for homeownership is further associated with higher homeownership rates, more encouraging mortgage regimes and a bigger housing bubble burst after 2007. The ideational origins of the financialization of housing and private Keynesianism are, after all, not only conservative and market-liberal.