My Real Estate Blog

A recent study published by the American Economic Review (AER) has shown a surprising correlation between the current housing dip and divorce rates across the nation.

The findings indicate that the state of our economy may have further reaching social effects than many would assume. Home price declines could be positively affecting marital stability.

The AER study reports, "Our findings suggest that house prices have a significant effect on divorce shares." Divorce rates have declined over the past few years. The U.S. Census Bureau reported in 1996 that 50% of all marriages ended in divorce. Figures from 2009 showed a 46% divorce rate.

TIME Magazine weighed in on the study findings, saying, "Study after study has looked at the impact of the recession on everything from obesity to fashion ... a number of reports all year which, collectively, seem to indicate that the recession has made for estranged bedfellows of couples who would get divorced if it wasn't for the decline in their home's value. Almost 40% of couples who were considering a divorce or separation before the recession began said they put aside their plans to split, according to The Great Recession and Marriage, a survey conducted by the University of Virginia's National Marriage Project."