Housing Affordability and Household Mobility

26 Pages Posted: 9 Oct 2023

See all articles by Dimuthu Ratnadiwakara

Dimuthu Ratnadiwakara

Louisiana State University, Baton Rouge

Santoshi Rimal

Louisiana State University

Abstract

Post-2008 financial crisis, regulators imposed stricter lending requirements for mortgages. We use a difference-in-differences strategy to examine the impact of these restrictions on household mobility. We find that restrictions on debt-to-income (DTI) ratios for mortgages led to increased outmigration from areas with less affordable homes. The effect is stronger in high-income areas, where individuals can afford to move. These findings suggest that housing affordability has a significant impact on household mobility.

Keywords: Migration, DTI ratios, Mobility, Affordability

Suggested Citation

Ratnadiwakara, Dimuthu and Rimal, Santoshi, Housing Affordability and Household Mobility. Available at SSRN: https://ssrn.com/abstract=4596162 or http://dx.doi.org/10.2139/ssrn.4596162

Dimuthu Ratnadiwakara (Contact Author)

Louisiana State University, Baton Rouge ( email )

Baton Rouge, LA 70803
United States

HOME PAGE: http://https://sites.google.com/view/dimuthu-ratnadiwakara

Santoshi Rimal

Louisiana State University ( email )

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