ENHR Tarragona International Conference 19-22 June 2013
This paper explores the effect of housing costs on residential mobility. Decisions to move depend not only on job or family related reasons but also on the relative costs of housing. There are several channels through which developments in housing market can affect household mobility. During recessions, falling house prices can create negative equity for some homeowners making it difficult to sell their property. On the other hand, fast increase in house prices can create an entry barrier for lower and middle-income households. For the purpose of identifying the effects of housing costs on mobility we use Danish register-based micro data. It allows us to control for a variety of socio-demographic characteristics of households, as well as characteristics of housing.