Sunday, January 23, 2011

Housing Bust and Mobility

by Calculated Risk on 1/23/2011 09:36:00 PM

Here is topic we've been discussing for several years ...

From Douglas Hanks at the Miami Herald: S. Florida job-market mobility stuck at home

[Joe] Farkas, 53, sees his underwater mortgage as something of a career anchor, too. He would pursue jobs across the country if it weren't for the financial hit he'd take by selling the house for a loss.

``There would be a lot more for me to choose from, a lot more for me to pursue,'' said Farkas ...
As I wrote several years ago, less worker mobility is kind of like arteriosclerosis of the economy. It lowers the overall growth potential. And how about this comment:
``I've had discussions with people who say, I'm willing to [relocate],'' said Berger, senior vice president of client relations for Octagon Technology Staffing. The first question I ask is: `How long have you owned your home?' If it's since '99, great. If it's 2005, that's a problem.''
This mobility problem will be with us for years.

• Here is the busy economic schedule for the coming week.
• Here is the Summary of last week