Unravelling cohort effects in consumption of living space by German households

Abstract

In recent decades, both mean dwelling sizes and per-capita living space have significantly increased worldwide. With dwelling size being the main determinant of private households? residential energy demand, these increases are major drivers of residential energy consumption. This article quantitatively analyses housing consumption in order to gain a better understanding of the factors behind risen dwelling sizes and per-capita living space. One of its focuses is on the differences between year-of-birth cohorts. We analysed data from the German Socio-Economic Panel (SOEP), using descriptive and econometric analyses. The results show that after controlling for covariates such as wealth, household size and age, more recent birth cohorts consume significantly more per-capita living space than previous cohorts. Although significant, cohort differences appear to be declining. This cohort effect, which goes beyond wealth accumulation and changing household structures, is primarily caused by heightened space expectations. It is accompanied by an increasingly unequal distribution of per-capita living space within cohorts in West Germany.