The Analysis of Household Owning/Renting House during and before the Financial Crisis

Abstract

This paper analyzes the household owning/renting house behavior and transitions between home owners and renters during and before the financial crisis, including an extension analysis for the time period of 2009-2011. I found some different household behaviors between before the financial crisis and during the financial crisis. Education level, age, employment status, household income, and household wealth level have significant effects on the household owning/renting house and/or transitions between home owners and renters. Two mortgage distress indexes are built in this paper, and the empirical results indicate a significant effect of mortgage distress on the transition from home owner to renter in the period of 2009-2011.