We solve a rich life-cycle model of household decisions involving consumption of perishable goods and housing services …, habit formation for housing consumption, stochastic labor income, stochastic house prices, home renting and owning, stock …-dependent housing expenditure share, (iii) non-housing consumption being significantly more sensitive to wealth and income shocks than …

housing market. We find that the household formation decision is affected by the rent-to-income ratio while tenure choice …This paper analyses the household formation and tenure choice decisions of different age cohorts in the Irish market … depends upon the difference between rent and the user cost of housing, a notional cost of services derived from owning a home …