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The Impact of Population Aging on Housing Prices: A Comparative Study of Singapore and the U.S

Author

Listed:
  • Fathali Firoozi

    (University of Texas at San Antonio)

  • Abolhassan Jalilvand

    (Loyola University Chicago)

  • Donald Lien

    (University of Texas at San Antonio)

  • Mikiko Oliver

    (Private consultant)

Abstract

Population aging and its economic impact have been receiving increasing attention in many countries around the world. This study offers an analysis of the impact of aging on the housing prices in Singapore relative to the U.S. as the benchmark. The study uses semiannual series over the period of 1998 to 2019 with the age subgroups organized in 5-year intervals. The literature contains conflicting arguments on the impacts of aging on housing prices. Based on observations made for Singapore and the U.S., this study supports the arguments that the elderly part of a population has a damping effect on housing prices. A novel behavioral divergence between Singapore and the U.S. emerges when the analysis focuses on the impact of the finer age subgroups on housing prices in the two countries. The “turning age”, which is defined as the approximate cut-off age when the impact of aging on housing prices turns from positive to negative, is approximately 55 years old in Singapore and 60 years old in the U.S.

Suggested Citation

  • Fathali Firoozi & Abolhassan Jalilvand & Donald Lien & Mikiko Oliver, 2020. "The Impact of Population Aging on Housing Prices: A Comparative Study of Singapore and the U.S," International Real Estate Review, Global Social Science Institute, vol. 23(4), pages 467-482.
    • Handle: RePEc:ire:issued:v:23:n:04:2020:p:467-482
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Age Subgroups; Economics of Aging; International Housing Markets; Upper Age-House Price Correlation;
    All these keywords.

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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