Negative Equity Does Not Reduce Homeowners’ Mobility.pdf

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Preview of Negative Equity Does Not Reduce Homeowners’ Mobility
🔗 Source: minneapolisfed.org
📊 Size: 214 KB
👤 Author: Sam Schulhofer-Wohl
⬇️ Downloads: 69

Summary

Negative equity does not reduce homeowners' mobility, with homeowners who have negative equity being slightly more likely to move than those with positive equity, contrary to previous findings by Ferreira, Gyourko, and Tracy (2010) that suggested negative equity reduces mobility by one-third. The difference in findings is due to the coding of moves in the data, with the previous study systematically dropping some negative-equity homeowners' moves, assuming people with negative equity are no more likely to leave a house vacant or rent it out when moving. Recoding cases where renters or vacancies occur as moves shows that negative-equity homeowners are more likely to move. Theoretical predictions about the effect of negative equity on mobility are ambiguous, but the analysis suggests that the forces raising mobility are stronger.

Description

Negative equity does not reduce homeowners' mobility, with homeowners who have negative equity being slightly more likely to move than those with positive...

Technical Information

  • File Format: PDF
  • File Size: 214 KB
  • Pages: 20
  • Language: EN
  • Author: Sam Schulhofer-Wohl
  • Total Downloads: 69
  • Last Updated: 2 months ago

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