Taxes, home equity, and household mobility
Abstract
• Home equity erosion causally reduces household mobility even without negative equity. • The Tax Reform Act 1986’s mortgage-only tax shield identifies higher mortgage demand. • Exclusive mortgage deduction inflated mortgage by $7,600, squeezing equity by 8.2%. • The equity erosion reduced homeowner mobility by 3.8%. • Renter mobility remained unchanged, validating the mortgage-specific variation.
Fields of Study & Subjects
Financial Literacy
Pension
Retirement Analysis
Housing Market and Economics
Corporate Taxation and Avoidance
Publication details
- Journal / source
- Journal of Financial Stability
- Publisher
- Elsevier BV
- Volume
- 85
- Pages
- 101553–101553
- Publication date
- 29 May 2026
- Language
- EN