Negative equity does not reduce homeowners' mobility

Sam Schulhofer-Wohl
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Sam Schulhofer-Wohl: https://www.dallasfed.org/fed/leadership/schulhofer-wohl

No 682, Working Papers from Federal Reserve Bank of Minneapolis

Abstract: Some commentators have argued that the housing crisis may harm labor markets because homeowners who owe more than their homes are worth are less likely to move to places that have productive job opportunities. I show that, in the available data, negative equity does not make homeowners less mobile. In fact, homeowners who have negative equity are slightly more likely to move than homeowners who have positive equity. Ferreira, Gyourko, and Tracy's (2010) contrasting result that negative equity reduces mobility arises because they systematically drop some negative-equity homeowners' moves from the data.> some negative-equity homeowners' moves from the data.

Date: 2010
New Economics Papers: this item is included in nep-mig and nep-ure
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Citations: View citations in EconPapers (10)

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http://www.minneapolisfed.org/research/wp/wp682.pdf

Related works:
Journal Article: Negative equity does not reduce homeowners’ mobility (2012)
Working Paper: Negative Equity Does Not Reduce Homeowners' Mobility (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmwp:682

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