Families in Mortgage Crisis

Funding: OTKA
Duration: October 1, 2013 - September 30, 2017 (24 months)

This project seeks to provide a more structured picture of the Hungarian mortgage crisis, not just for the scientific community, but also for policy makers and the general public. It intends to utilize the perspectives of both households and macro-level data to explore the inequalities in the chances of recovery, and the effects of housing policy and the crisis on residential mobility across groups from different regions and socioeconomic backgrounds.

Increased housing market activity, foreign investors, and favorable mortgage conditions - these three factors created seemingly excellent circumstances for the purchase of real estate in Hungary after 2004. Although this usually required long-term, large-sum foreign currency loans of Hungarian families buying real estate at this time did so), these loans were carefully factored into family budgets. Unfortunately, the monetary crisis of 2008 caused extreme repayment difficulties - many people lost their jobs and foreign currency values ​​increased, causing a substantial increase in monthly mortgage payments. Some persisted. Others are still hopelessly mired in debt.

This research provides vital background information for assisting in the planning of housing policy by analyzing the past and current struggles of over 140,000 families affected by the mortgage crisis.

Principal investigator (PI):

Adrienne Csizmady
Senior Research Fellow
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