We present empirical evidence on the heterogeneity in monetary policy transmission across countries with diﬀerent home ownership rates. We use household-level data together with shocks to the policy rate identiﬁed from high-frequency data. We ﬁnd that housing tenure reacts more strongly to unexpected changes in the policy rate in Germany and Switzerland –the OECD countries with the lowest home ownership rates–compared with existing evidence for the U.S. An unexpected decrease in the policy rate by 25 basis points increases the home ownership rate by 0.8 percentage points in Germany and by 0.6 percentage points in Switzerland. The response of non-housing consumption in Switzerland is less heterogeneous across renters and mortgagors, and has a diﬀerent pattern across age groups than in the U.S. We discuss economic explanations for these ﬁndings and implications for monetary policy.
Keywords: Monetary policy transmission, Home ownership, Housing tenure, Consumption