The tenure transition decision for elderly homeowners
Article Abstract:
Recent studies on the housing preferences of the elderly have not clearly explained the primary motivation for old people for quitting homeownership. To fill this gap in literature, a study was conducted to examine the tenure transition decision for elderly homeowners, particularly the frequency of own-to-rent transitions among the aged. The sample consists of 843 households with heads who are 55 years or older at the time of the 1983 interview. Findings offered some support for the Life Cycle Hypothesis, which holds that the aged liquidate their ownership positions to spend housing wealth. However, they also provided some support for the precautionary savings hypothesis, which indicates that old people generally avoid consuming their housing wealth but will do so if particular wealth-depleting contingencies exist.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Testing the central prediction of housing tenure transition models
Article Abstract:
A housing tenure choice model that is based on tenure transition theory principles is proposed and tested. This model assumes that the present liquefiable wealth of a household determines its tenure decision to shift from tenancy to homeownership, controlling for the asset price of housing. To test the robustness of this assumption, tenure choice functions are determined using household data from the US, Quebec and the rest of Canada. Results provide support to the position that nonhuman wealth positions possess explanatory power. Moreover, the findings lend corroboration to the predicted relevance of the asset price of housing. Finally, it is demonstrated that savings decisions of renters are a main predictor of the probability that tenant households will shift to homeownership. Implications are discussed.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
The demand for home mortgage debt
Article Abstract:
An extension of S.I. Ranney's (1981) model of debt minimization is used to model home mortgage demand. The proposed model separates demand for mortgages into its housing and non-housing components. The former represents the minimum amount of mortgage debt required to buy or hold a residence. Positive or negative deviations from this minimum thus reflect non-housing demand. An excess would represent mortgage debt used for non-housing needs, and a shortfall indicates the used of non-mortgage debt for housing needs. Calculation of these respective components shows that non-housing demand accounts for a large portion of home mortgage demand in both the US and Canada. This method of demand decomposition is crucial in the evaluation of tax and other policy changes.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Life-cycle theory, inflation, and the demand for housing. Estimating the income, price, and interest elasticities of housing demand
- Abstracts: Life-cycle theory, inflation, and the demand for housing. An intertemporal model of housing demand: implications for the price elasticity
- Abstracts: The decision to regionalize in the provision of education: an application ofthe Tiebout model. Optimal regulation of land development through price and fiscal controls
- Abstracts: The virtues of transnationalism. The blind alleys of contemporary political philosophy. 'News' from a political point of view
- Abstracts: The decline of organizations and the rise of administrators: Parkinson's Law in theory and practice. Voluntary provision of public goods: the multiple unit case