Housing Choices in Aging Households: The Influence of Life Cycle, Demographics, and Family

Submitted by Urban Insight on Thu, 07/26/2012 - 12:34
Author

Gary Painter and KwanOk Lee

Year Published
2010
Abstract
The aging of Baby Boomers is producing a
wide range of consequences across many
economic sectors. Lasting attention
has been paid to the implications of this
generation’s maturation on the federal budget, but
there has been considerably less focus on possible
impacts on housing markets (Myers and Ryu, 2008).
Conventional wisdom suggests that seniors remain
in their own homes until they pass away – perhaps
supported by high elderly homeownership rates
(more than 70 percent in the past four decades
for households more than 75 years old). In most
cases seniors do remain in their homes, but
recent research by Painter and Lee (2009) shows
considerable mobility between housing tenure
types for people over 50 years old. More than 25
percent of the sample in our study changed tenure
status at least once after age 50 (see Table 1).
Almost 15 percent switched from home ownership
to renting, while 3.5 percent started off owning
but went through multiple housing transitions.
Those renting when they entered the sample
but who later became homeowners make up 8
percent of the group. The remainder of the sample
comprises those who always owned (53 percent) or
always rented (21 percent).
Research Category