Household Mobility Over the Great Recession: Evidence from the U.S. 2007-09 Survey of Consumer Finances Panel

28 Pages Posted: 20 Oct 2013

See all articles by Jesse Bricker

Jesse Bricker

Board of Governors of the Federal Reserve System

Brian Bucks

Consumer Financial Protection Bureau

Date Written: June 5, 2013

Abstract

This paper uses data from the 2007-09 Survey of Consumer Finances panel to examine U.S. households' decisions to move and the role of negative home equity and economic shocks, such as job loss, in these decisions. Even over this period of steep house price declines and sharp recession, we find that most moves were prompted by standard reasons. The recession's effects are nonetheless apparent in the notable fraction of homeowners who moved involuntarily due to, for example, foreclosure. Many involuntary moves appear to stem a combination of negative home equity and adverse economic shocks rather than negative equity alone. Homeowners with both negative equity and economic shocks were substantially more likely to have moved between 2007 and 2009 and to have moved involuntarily. The findings suggest that, analogous to the double-trigger theory of default, the relationship between negative equity and household mobility varies with households' exposure to adverse shocks.

Keywords: Mobility, negative equity

JEL Classification: D14, J61

Suggested Citation

Bricker, Jesse and Bucks, Brian, Household Mobility Over the Great Recession: Evidence from the U.S. 2007-09 Survey of Consumer Finances Panel (June 5, 2013). FEDS Working Paper No. 2013-53. Available at SSRN: https://ssrn.com/abstract=2341726 or http://dx.doi.org/10.2139/ssrn.2341726

Jesse Bricker (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Brian Bucks

Consumer Financial Protection Bureau ( email )

United States

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