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Negative Home Equity and Household Mobility: Evidence from Administrative Data

Author

Listed:
  • Sander van Veldhuizen
  • Benedikt Vogt

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Bart Voogt

Abstract

We investigate the impact of negative home equity on household mobility. We investigate the impact of negative home equity on household mobility. We employ a unique administrative data set, which contains annual mobility and a large set of homeownercharacteristics of more than two million Dutch households. We exploit the regional variation of the substantial and unanticipated housing market bust starting in 2008 until 2012 to identify the effect of negative home equity on mobility. We find that households falling into negative equity due to unanticipated declining house prices are 18 percent less likely to move compared to households maintaining positive home equity. Read also: Discussion Paper 345 'Negative home equity and job mobility'.

Suggested Citation

  • Sander van Veldhuizen & Benedikt Vogt & Bart Voogt, 2016. "Negative Home Equity and Household Mobility: Evidence from Administrative Data," CPB Discussion Paper 323, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:323
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    References listed on IDEAS

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    Cited by:

    1. Sander van Veldhuizen & Bart Voogt & Benedikt Vogt & Andrea Morescalchi, 2017. "Negative home equity and job mobility," CPB Discussion Paper 345.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Sander van Veldhuizen & Bart Voogt & Benedikt Vogt & Andrea Morescalchi, 2017. "Negative home equity and job mobility," CPB Discussion Paper 345, CPB Netherlands Bureau for Economic Policy Analysis.

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    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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