Housing price and intergenerational co-residence in urban China

This paper documents the increasing trend of adult children co-residing with elderly parents in urban China and links it with the rising housing price, which provides an incentive for young adults to save living cost through intergenerational co-residence. Using land supply as an instrument, we find that city-level housing price has a positive effect on co-residence, and this effect is larger for those who do not own a house, who have a lower level of wealth, and who are relatively younger. Husband's parents, who take relatively more responsibility to provide housing support for the young couple, are more likely to be co-resided with.