Negative home equity reduces household mobility: Evidence from administrative data

Sander Veldhuizen (), Benedikt Vogt and Bart Voogt

Journal of Housing Economics, 2020, vol. 47, issue C

Abstract: We investigate the impact of negative home equity on household residential mobility. We employ a unique administrative panel data set covering nearly the whole population of Dutch homeowners. The data contains a large set of personal characteristics of more than 2,000,000 homeowners. We identify the effect of negative home equity on mobility by exploiting the quasi-exogenous regional variation of the unanticipated housing market shock during 2008–2012, in which real house prices declined by 25%. Households plunging into negative home equity due to unanticipated declining house prices are 21% less likely to move compared to households upholding positive home equity.

Keywords: Household mobility; Negative home equity; LTV; Administrative data (search for similar items in EconPapers)
JEL-codes: D10 D14 H31 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:47:y:2020:i:c:s1051137717302528

DOI: 10.1016/j.jhe.2018.06.010

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