Housing busts and household mobility
Fernando Ferreira (),
Joseph Gyourko () and
Joseph Tracy ()
Journal of Urban Economics, 2010, vol. 68, issue 1, pages 34-45
Using two decades of American Housing Survey data from 1985 to 2007, we revisit the literature on lock-in effects and provide new estimates of the impacts of negative equity and rising interest rates on the mobility of owners. Both lead to substantially lower mobility rates. Owners suffering from negative equity are one-third less mobile, and every added $1000 in real annual mortgage costs lowers mobility by about 12%. Our results cannot simply be extrapolated to the future, but they do have potentially important implications for policy makers concerned about the consequences of the housing bust that began as our data series ended. In particular, they indicate that we need to begin considering the consequences of lock-in and reduced household mobility because they are quite different from those associated with default and higher mobility.
Keywords: Household; mobility; Negative; equity; Mortgage; lock-in (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (79) Track citations by RSS feed
Downloads: (external link)
http://www.sciencedirect.com/science/article/B6WMG ... 28ae7ad3e81eb8d3b1ff
Full text for ScienceDirect subscribers only
Working Paper: Housing busts and household mobility (2008)
Working Paper: Housing Busts and Household Mobility (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:eee:juecon:v:68:y:2010:i:1:p:34-45
Access Statistics for this article
Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange
More articles in Journal of Urban Economics from Elsevier
Series data maintained by Zhang, Lei ().