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The Relationship between the Housing & Labor Market Crises and Doubling-Up: An MSA-Level Analysis, 2005-2010

Author

Listed:
  • Rogers, William H.

    () (University of Missouri-St. Louis)

  • Winkler, Anne E.

    () (University of Missouri-St. Louis)

Abstract

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.

Suggested Citation

  • Rogers, William H. & Winkler, Anne E., 2013. "The Relationship between the Housing & Labor Market Crises and Doubling-Up: An MSA-Level Analysis, 2005-2010," IZA Discussion Papers 7263, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7263
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    References listed on IDEAS

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    Cited by:

    1. Downing, Janelle, 2016. "The health effects of the foreclosure crisis and unaffordable housing: A systematic review and explanation of evidence," Social Science & Medicine, Elsevier, vol. 162(C), pages 88-96.
    2. repec:pri:crcwel:wp13-13-ff is not listed on IDEAS
    3. Rogers, William H. & Winkler, Anne E., 2014. "How Did the Housing and Labor Market Crises Affect Young Adults' Living Arrangements?," IZA Discussion Papers 8568, Institute for the Study of Labor (IZA).
    4. Natasha V. Pilkauskas & Irwin Garfinkel & Sara S. McLanahan, 2013. "Doubling Up as a Private Safety Net for Families with Children," Working Papers 1480, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
    5. Hector Sala & Pedro Trivín, 2014. "Labour market dynamics in Spanish regions: evaluating asymmetries in troublesome times," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 5(2), pages 197-221, August.
    6. Dettling, Lisa J. & Hsu, Joanne W., 2014. "Returning to the Nest: Debt and Parental Co-residence Among Young Adults," Finance and Economics Discussion Series 2014-80, Board of Governors of the Federal Reserve System (U.S.).
    7. William H. Rogers & Anne E. Winkler, 2014. "How Did the Housing and Labor Market Crises Affect Young Adults' Living Arrangements?," Working Papers 1005, University of Missouri-St. Louis, Department of Economics.
    8. Philip Arestis & Ana Rosa Gonzales-Martinez, 2017. "Economic precariousness: A new channel in the housing market cycle," FMM Working Paper 12-2017, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    9. repec:gam:jsusta:v:10:y:2018:i:4:p:1026-:d:138888 is not listed on IDEAS

    More about this item

    Keywords

    household formation; foreclosures; housing market; labor market;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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