Publication Date
Fall 12-7-2025
Document Type
Student Project
First Advisor
Groves, Jeremy
Degree Name
B.S. (Bachelor of Science)
Department
Department of Economics
Abstract
Housing costs shape the way families spend on protection and security. This study looks at how the share of income devoted to housing, the housing burden, influences household spending on four types of insurance: vehicle, life, personal, and health. Using data from nearly 92,000 households and regression models that account for state differences, I find that even small increases in housing burden shift insurance choices in meaningful ways. A one‑percentage‑point rise in housing burden is linked to a 2.1% increase in vehicle insurance spending and a 0.5% increase in life insurance, but a 0.7% decrease in personal insurance and a 0.5% decrease in health insurance. Age, education, marital status, and housing tenure also matter; older households spend more on health and life insurance, while renters and student housing residents consistently spend less across all categories. Higher education levels are tied to greater spending, especially for personal and health insurance. Patterns in related expenses, such as alcohol, medical services, and vehicle costs, reinforce these findings. Taken together, the results show how housing affordability pressures impact household budgets, encouraging spending in some areas while crowding out others. These insights highlight the trade‑offs families face and underscore the importance of housing policy in shaping financial security and access to protection.
Recommended Citation
Lytell, Melanie, "Housing Burden and Insurance Expenditures" (2025). Honors Capstones.
Suggested Citation
Lytell, Melanie, "Housing Burden and Insurance Expenditures" (2025). Honors Capstones.
