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

In most Western countries, home owners are much less likely to change residence than renters. 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 of 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 1981-98 Netherlands Housing Demand surveys and logistic regression models, it is found that the difference between home owners 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.