As Clive Crook pointed out in the Atlantic back in December, homeownership can hurt the labor market and the economy. The New York Times has some stories of how: “The rapid decline in housing prices is distorting the normal workings of the American labor market. Mobility opens up job opportunities, allowing workers to go where they are most needed. … Unable to sell their homes easily and move on, tens of thousands of people like Mr. Kirkland and Dr. Morgan are making the labor force less flexible just as a weakening economy puts pressure on workers to move to wherever companies are still hiring.”
UPDATE: Don Boudreaux argues at Cafe Hayek that people being less willing to move is a sign that they aren’t as economically distressed as the Times story would suggest.
