Housing choices and labor income risk

Arbeitspapier

I show that individuals whose unemployment risk tends to increase more when local home prices fall optimally invest less in owner-occupied housing. Using a unique, Swedish register-based database, I find that a one standard deviation increase in the covariance between individually estimated unemployment risks and local home prices implies an average increase in the value of households' investments in owner-occupied housing of USD 13,300. Further, I find, in line with the predictions of my theoretical model, that same-industry couples rent more often, but, conditional on ownership, invest USD 9,200 more on average in single-family homes than different-industry couples.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Sveriges Riksbank Working Paper Series ; No. 272

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Empirical Analysis ; Household Saving; Personal Finance ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
• Subject: homeownership ; housing demand ; unemployment ; house price risk

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Jansson, Thomas
• Event: Veröffentlichung
• (who): Sveriges Riksbank
• (where): Stockholm
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/103826
• Last update: 10.03.2025, 11:43 AM CET