Higher house prices are behind a reduction in the number of babies being born, as people who cannot afford their own home put off having children, according to research by the European Bank for Reconstruction and Development.
A 10% increase in house prices translates into a 1.3% drop in the birth rate, the EBRD’s data show.
That decline is mainly down to those renting a property, where the birth rate drops 4.9% when house prices rise 10%. In contrast, the birth rate increases by 2.8% for those owning their own homes.
