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Whether children benefit from being raised in a home owned by their parents has important policy implications and has been the topic of much scholarly debate. The authors match Panel Study of Income Dynamics data with census tract data to examine the impact of childhood experiences on adult outcomes for children followed over three decades. This allows one to document a wide range of characteristics. For children born between 1968 and 1974, the authors analyze data on their first 18 years and also various outcomes when they are between 25 and 31 in 1999. The authors control for a comprehensive set of observable parental characteristics and develop a method to control for unobservable child characteristics together with an instrumental variable for the remaining selection problems. Parental homeownership status and children’s college education and homeownership status are closely related, although the former is generated partially by the greater residential stability associated with homeownership. [ABSTRACT FROM AUTHOR]