Residential Mobility Decisions in Japan: Effects of Housing Equity Constraints and Income Shocks under the Recourse Loan System

Miki Seko, Kazuto Sumita, Michio Naoi

Research output: Contribution to journalArticle

8 Citations (Scopus)


This paper draws on six waves of Japanese household longitudinal data (Keio Household Panel Survey, KHPS) and estimates a conditional fixed effects logit model to investigate the effects of housing equity constraints and income shocks on own-to-own residential moves in Japan. By looking at contemporaneous extended Loan-to-Value (ELTV) and extended Debt-to-Income (EDTI) ratios under the recourse loan system, we examine whether housing equity constraints and negative income shocks have any impact on own-to-own residential moves. Taking account of the specific nature of the recourse loan system in Japan, we further investigate whether these effects are different between positive and negative equity households. The estimation results show that housing equity constraints and negative income shocks significantly deter own-to-own residential moves for positive equity households.

Original languageEnglish
Pages (from-to)63-87
Number of pages25
JournalJournal of Real Estate Finance and Economics
Issue number1
Publication statusPublished - 2012 Jun 1
Externally publishedYes



  • Conditional fixed effects logit model
  • Debt-to-income ratio
  • Housing equity constraint
  • Japan
  • Loan-to-value ratio
  • Negative equity
  • Recourse loan
  • Residential mobility

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics
  • Urban Studies

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