The Relationship between the Housing & Labor Market Crises and Doubling-Up: An MSA-Level Analysis, 2005-2010
It is now well-established that the U.S. housing market crisis preceded the labor market crisis and that, in the wake of these crises, doubling-up and cohabitation increased and homeownership fell. What is less clear is what happened at the subnational level. This study reports on: 1) how the length, severity and relative timing of both the labor market and housing crises varied by MSA; and 2) the association between the timing of the labor market and housing crises and changes in homeownership and doubling-up at the MSA level. The analysis is conducted using data on 353 MSAs, with a focus on 12 MSAs, for the period 2005 (pre-crisis) through 2010/2011. MSAs are categorized into those where the housing market declined first, those where the labor market declined first, and those where the events were concurrent. The analysis reveals that: 1) in the majority of MSAs, the labor market declined first, contrary to the national pattern and the experience of the vast majority of large MSAs; 2) there is a clear relationship between greater regional housing distress and falling homeownership rates; and 3) somewhat surprisingly, the association between changes in doubling-up and these crises are fairly weak at the MSA level.
|Date of creation:||Mar 2013|
|Date of revision:|
|Publication status:||Published in: Monthly Labor Review, 2013|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Goodman, Allen C. & Smith, Brent C., 2010. "Residential mortgage default: Theory works and so does policy," Journal of Housing Economics, Elsevier, vol. 19(4), pages 280-294, December.
- Frances Goldscheider & Julie DaVanzo, 1989. "Pathways to Independent Living in Early Adulthood: Marriage, Semiautonomy, and Premarital Residential Independence," Demography, Springer;Population Association of America (PAA), vol. 26(4), pages 597-614, November.
- Atif Mian & Amir Sufi & Francesco Trebbi, 2011.
"Foreclosures, House Prices, and the Real Economy,"
IMES Discussion Paper Series
11-E-27, Institute for Monetary and Economic Studies, Bank of Japan.
- Lisa J. Dettling & Melissa Schettini Kearney, 2011.
"House Prices and Birth Rates: The Impact of the Real Estate Market on the Decision to Have a Baby,"
NBER Working Papers
17485, National Bureau of Economic Research, Inc.
- Dettling, Lisa J. & Kearney, Melissa S., 2014. "House prices and birth rates: The impact of the real estate market on the decision to have a baby," Journal of Public Economics, Elsevier, vol. 110(C), pages 82-100.
- Borsch-Supan, Axel, 1986. "Household formation, housing prices, and public policy impacts," Journal of Public Economics, Elsevier, vol. 30(2), pages 145-164, July.
- Harding, John P. & Rosenblatt, Eric & Yao, Vincent W., 2009. "The contagion effect of foreclosed properties," Journal of Urban Economics, Elsevier, vol. 66(3), pages 164-178, November.
- Winkler, Anne E., 1992. "The impact of housing costs on the living arrangements of single mothers," Journal of Urban Economics, Elsevier, vol. 32(3), pages 388-403, November.
- Cohen, Jeffrey P. & Coughlin, Cletus C. & Lopez, David A., 2012. "The boom and bust of U.S. housing prices from various geographic perspectives," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 341-368.
- Wall, Howard J., 2011.
"The Employment Cycles of Neighboring Cities,"
29410, University Library of Munich, Germany.
- Karl E. Case & Robert J. Shiller, 2003. "Is There a Bubble in the Housing Market?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 299-362.
- William H. Rogers & William Winter, 2009. "The Impact of Foreclosures on Neighboring Housing Sales," Journal of Real Estate Research, American Real Estate Society, vol. 31(4), pages 455-480.
- Ermisch, John, 1999. "Prices, Parents, and Young People's Household Formation," Journal of Urban Economics, Elsevier, vol. 45(1), pages 47-71, January.
- Fernando Ferreira & Joseph Gyourko, 2011. "Anatomy of the Beginning of the Housing Boom: U.S. Neighborhoods and Metropolitan Areas, 1993-2009," NBER Working Papers 17374, National Bureau of Economic Research, Inc.
- Zhu Xiao Di & Xiaodong Liu, 2006. "The Effects of Housing Push Factors and Rent Expectations on Household Formation of Young Adults," Journal of Real Estate Research, American Real Estate Society, vol. 28(2), pages 149-166.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7263. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.