Where home prices are high in relation to income, total fertility rate decreases:
Of course, there are different lifestyles in different countries or even cities. Europeans and Americans, e.g., usually require more privacy and personal space than people from other parts of the world. (Westerners are spoiled, in others words.) However, it turns out that home price is the single most important determinant of fertility.
Policy implications? The most powerful contraceptive mechanism ever devised works as follows:
- Make new housing construction difficult and expensive by the combination of high tax burden, excessive regulation, zoning laws, etc.
- Pump a lot of money into the economy by using very expansive monetary policy, whereby making the existing housing stock prohibitively expensive.
Which is precisely what most Western economies do. The Western civilisation is slowly dying because of a mixture of wrong economic policies.