The Impact of Diminished Housing Wealth on Health: Evidence from the Great Recession
Tansel Yilmazer, Ohio State University
Patryk Babiarz, University of Alabama
Fen Liu, Ohio State University
This study investigates how the decline in housing wealth during the recent Great Recession affected the psychological and physical health of homeowners. We also study whether the stress caused by the financial loss interfered with life and work activities. Controlling for the changes in family income and employment status, we show that the decline in housing wealth is associated with an increase in psychological distress and a deterioration of physical health. The interference of stress with life and work activities is most pronounced among younger, middle-aged, and African-American homeowners.