Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334943 
Year of Publication: 
2025
Series/Report no.: 
ECB Working Paper No. 3083
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
College enrolment typically rises during recessions. This paper demonstrates that housing wealth destruction dampened this countercyclical effect in areas most affected by the U.S. housing bust of 2008-2011. By combining household data with a mortgage credit register and housing price data, we reveal that negative shocks to housing wealth significantly reduced college enrolment among homeowners relative to renters during this period. Up to 2% of the local college-age population did not pursue college enrolment at the height of the bust due to housing wealth destruction. The negative impact of homeownership on college education persists for a decade, contributing to persistently lower incomes among homeowners in the most affected areas.
Subjects: 
Homeownership
Housing Wealth
College enrolment
Housing Boom-Bust Episodes
wealth
housing
real property
real estate credit
university
economic growth
mortgage
property market
United States
JEL: 
24
E32
J24
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-7383-0
Document Type: 
Working Paper

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