Abstract
The year 2003 experiences the two tax revisions related to housing investment. This paper examines the recent situations of family transfer and its effect on housing investment in Greater Tokyo. We analyzed the 1998 microdata to quantify the effect on new housing starts and composition of housing fund. We found that an increase in the probability of receiving transfer led to the greater housing investment, but it did not affect the decision of housing investment. Unlike in the United States, we also found the tradeoff between family transfer and borrowings in housing purchase. The 10000-yen increase in transfer decreased the borrowings by 2100 yen, so that the total housing investment increased by 7900 yen.
