Who would have thought there would be a strong positive correlation between home ownership and unemployment? According to a Reuter’s news article, high levels of home ownership are strongly related to subsequent rises in unemployment because labor mobility becomes reduced, according to new research.
The country of Germany provides a good case in point. The citizenry of Germany is primarily composed of renters and the rate of unemployment is exceptionally low! Conversely, Spain has 80% home ownership and 25% unemployment.
The home ownership high unemployment numbers connection does make sense upon some reflection. If a couple moves into the home of their dreams, then it is quite likely they will try to remain there come hell or high water!