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Re:New Zealand plunges into recessionary spiral by dzhiurgis on Saturday November 05, 2022 @04:36AM (#33479262)
So what happens when your house mortgage is in negative equity? Just means you’ll need to hodl longer?
Re:New Zealand plunges into recessionary spiral by tuatoru on Saturday November 05, 2022 @05:28AM (#33479602)
Yes.

Those with negative equity are likely to pay down debt faster rather than consuming (hang on to the car for another year, or not repaint, for example), so there is some effect on aggregate demand over time.