Housing wealth, not just income, locks in generational inequality

New research shows that housing wealth is passed down between generations much more effectively than income. This means economic inequality is more entrenched than studies focusing only on earnings have shown.

Economists have long tracked how much income parents pass to their children. This paper shows that housing wealth is a much stickier asset, locking in economic status across generations. It also means that racial wealth gaps are much harder to close than income gaps alone would suggest, especially in places where housing is scarce.