The Changing Effect of Home Ownership on Residential Mobility in the Netherlands, 1980-98

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Abstract

In most western countries, homeowners are much less likely to change residence than renters are. In the last few decades, the rise in home ownership in the Netherlands has been spectacular. This would imply that the population has become less mobile, which has consequences for the functioning of the housing market – at least, if the relationship between home ownership and residential mobility has not changed. This research addresses the question whether the effect of home ownership on the probability of residential mobility has changed over the last few decades and if so, how. Using data from the 1981-1998 Netherlands Housing Demand surveys and logistic regression models, we find that the difference between homeowners and renters in residential mobility has changed over time. The results indicate a decrease in the effect of home ownership with an interruption in 1984-85. This finding might indicate stability in the effect of home ownership, except for periods of booms or busts on the housing market.

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