This paper aims to study the causal relationships
between earnings, age, number of kids, and education level of U.S. individuals
in residential real estate investments. This empirical study analyzes a total
of 421,911 observations based on the interview of indi- viduals from the Survey
of Income and Program Participation (SIPP). By employing the econometric
techniques of binomial logit and probit models, multinomial logit model, and Tobit
model on censored data, the results showed
that most individuals in the U.S. are willing to invest in real estate. Interestingly, as the education level
increases, people tend not to invest in
real estate. However, with the
increase in earnings, the number of kids, and age, people are more likely to invest in real estate.
