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It’s well known that when the cost of housing and shelter consumes a larger share of income, households adjust by reducing their consumption of other goods and services.

But research from Canada and elsewhere suggests that other decisions are affected, too, most notably those surrounding when (and whether) to have children.

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The impact of rising housing prices varies by location and the homeownership status of the family in question and there are conflicting forces at play.

On the one hand, an increase in shelter costs makes the space needed for child-rearing more expensive, resulting in a negative impact on fertility. Conversely, those who own their own homes benefit from increasing prices because of the wealth effect. They can extract home equity to invest in child-rearing and hence, may experience a positive impact on fertility.