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making riskier investment decisions in order to try to gain wealth.The cumulative effect of these financial habits can lead to negative long-term consequences.What happens when an individual gives up on the idea of owning a home? They spend more on nonessential items, make risky investments and work less, a recent study showed, and those choices could help cement long-running income inequality trends.“Discouraged renters consume more relative to their assets, work less, and invest more aggressively in risky assets—behaviors that erode their long-run financial stability,” according to the report “Giving Up” by economic researchers Younggeun Yoo of the University of Chicago and Seung Hyeong Lee of Northwestern University.On the other hand, renters who remain hopeful that they will own a home show better financial habits and a stronger work ethic, the report found. And that may pay off in the long run, as renters who go on to own a home accumulate significantly more wealth than lifetime renters.“Hopeful renters adopt forward-looking behaviors: they reduce consumption, exert higher labor effort, and invest more cautiously to accumulate wealth for a future home purchase,” the report said.Changes in how people view homeownership can lead to shifts in financial behavior, risk-taking and work ethic. And all of that can ripple through markets, hurt retirement security and worsen long-term income inequality.The study compared Americans who turned 20 years old in 2010 to those who turned 20 in 1970, and projected that only 74.2% of the younger group would become homeowners. By comparison, 83.8% of the 1970 cohort eventually became homeowners.Homeownership has been strained by persistently elevated mortgage rates and home prices, which have kept many potential buyers on the sidelines.The study showed that around 15% of the 2010 cohort had given up on homeownership by age 30 and forecast that nearly all of that segment will remain discouraged by the time they reach their 40s.The researchers also found that homeownership status can affect investment strategies, especially if a renter is close to being able to buy a home.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,906.60 -39.53 (-0.57%)Dow 3049,514.29 +32.14 (+0.06%)Nasdaq22,856.04 -296.04 (-1.28%)Russell 20002,674.97 +11.64 (+0.44%)VIX18.73 +0.80 (+4.46%)Gold5,213.00 -13.20 (-0.25%)Trending tickersIONQ IonQ, Inc. 40.97 +7.38 (+21.97%)NVDA NVIDIA Corporation 185.07 -10.55 (-5.40%)EOSE Eos Energy Enterprises, Inc. 6.87 -4.27 (-38.32%)AI C3.ai, Inc. 8.25 -2.06 (-19.98%)RXT Rackspace Technology, Inc. 2.4720 +1.1220 (+83.11%)PortfolioSign in to access your portfolioSign inTop gainersSEZL Sezzle Inc. 85.80 +23.18 (+37.02%)LMAT LeMaitre Vascular, Inc. 112.54 +21.16 (+23.16%)IONQ IonQ, Inc. 41.14 +7.55 (+22.47%)FA First Advantage Corporation 11.50 +1.98 (+20.80%)HPP Hudson Pacific Properties, Inc. 7.65 +1.29 (+20.28%)Top losersEOSE Eos Energy Enterprises, Inc. 6.92 -4.22 (-37.87%)ACMR ACM Research, Inc. 56.08 -12.39 (-18.10%)CHE Chemed Corporation 388.56 -78.05 (-16.73%)FOUR Shift4 Payments, Inc. 48.10 -9.27 (-16.16%)FSK FS KKR Capital Corp. 11.23 -2.09 (-15.73%)Most activeNVDA NVIDIA Corporation 184.97 -10.66 (-5.45%)EOSE Eos Energy Enterprises, Inc. 6.92 -4.22 (-37.87%)NU Nu Holdings Ltd. 15.22 -1.43 (-8.62%)PLUG Plug Power Inc. 1.8850 -0.0250 (-1.31%)AAL American Airlines Group Inc. 14.03 +0.71 (+5.33%)Top economic eventsEarnings eventsMy earnings eventsEarnings events