The Link Between High Levels of Homeownership and Unemployment
Geege Schuman stashed this in America
"A new working paper provides powerful evidence of that higher rates of homeownership may in fact be connected to higher rates of unemployment. The study, "Does High Home-Ownership Impair the Labor Market?" [PDF], by economists Andrew Oswald, whose earlier research argued that high rates of homeownership undercut labor mobility, and David Blanchflower of Dartmouth University, employes a large-scale data set covering the past 25 years (1985-2011) and more than two million American households to examine the connections between homeownership and unemployment, labor mobility, commuting times, and new business formations.
"The bottom line? A state's homeownership rate may be a powerful precursor to "eventual sharp rises in unemployment in that state." The authors find that a doubling of a state's rate of homeownership "is followed in the long-run by more than a doubling of the later unemployment rate."
"Higher rates of homeownership lead to higher rates of unemployment, according to the authors, in three key ways: by restricting labor mobility, generating longer commutes, and by lowering rates of new business formation."
I need a new Stash: Who Knew?!
Is it because once you own a home you are less able to move?
The longer commutes leading to lowered rates of new business formation makes sense to me.