Monday, May 13, 2013
Homeownership troubles
Not such a great thing after all ...
You tend to get tied down and unable to do new things. Which can be good or bad, I suppose, depending on your perspective. If you want to prove to someone like a spouse that you're not a flight risk, buying a house may be on the same order of signaling as a diamond engagement ring.
The study makes clear that homeowners don't necessarily have higher rates of unemployment. Instead -- and this is really important -- they conclude that high rates of homeownership affect the entire labor market through lower rates of productivity and entrepreneurship. Regions with higher homeownership created fewer new businesses and had longer commute times and lower rates of labor mobility.
You tend to get tied down and unable to do new things. Which can be good or bad, I suppose, depending on your perspective. If you want to prove to someone like a spouse that you're not a flight risk, buying a house may be on the same order of signaling as a diamond engagement ring.
Labels: economics
