Mobility and mortgages: Evidence from the PSID

N. Edward Coulson, Paul L.E. Grieco

Research output: Contribution to journalArticle

37 Scopus citations

Abstract

We use the 1999-2009 Panel Survey of Income Dynamics to estimate household move probabilities as a function of, among other things, current housing equity. The lock-in effect supposes that mobility decreases with the mortgage loan-to-value ratio, particularly as equity becomes negative. We find that while owners do move less than renters, the move probability increases as homeowners become underwater. The propensity to move out of state in particular increases dramatically for sand state homeowners who have negative equity. There is no lock in effect from negative equity.

Original languageEnglish (US)
Pages (from-to)1-7
Number of pages7
JournalRegional Science and Urban Economics
Volume43
Issue number1
DOIs
StatePublished - Jan 1 2013

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Urban Studies

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