Calculated Risk details in the post Housing Bust and Geographical Mobility that:
It is very difficult for homeowners with negative equity to move.That is until negative equity homes become foreclosures. Comparing areas in which sales via foreclosures are picking up steam (i.e. forced to move out in California / West) against areas in which problems are still picking up steam (i.e. still stuck in their home in the Northeast), we see mobility has returned to those hit worse, while those muddling through remain stuck.
Source: Census
Why is this good? Shouldn't people move to where their labor is needed the most?
ReplyDeleteOr are you arguing that there will be stronger communities?
foreclosures = mobility. the west has more foreclosures, thus more mobility. i agree with you that people SHOULD move to where their labor is most needed.
ReplyDeletehomeowners shouldn't think their home is a liquid investment (which it somehow was over the past 5-10 years). they are hard assets and as such, it would be more appropriate for a large percentage of homeowners to once again become renters