Advanced Search
MyIDEAS: Login to save this paper or follow this series

Determinants and Consequences of Moving Decisions for Older Homeowners

Contents:

Author Info

  • Esteban Calvo
  • Kelly Haverstick
  • Natalia A. Zhivan

Abstract

The lore on whether older Americans move is mixed. While the familiar stereotype is that retirees flock to Florida or Arizona, prior studies have found that their home equity rises modestly over time, suggesting that they tend to stay put. This paper examines moving trends, determinants, and consequences using the original cohort of the Health and Retirement Study (HRS). We find that a full 30 percent of homeowners in the HRS cohort move over the 1992-2004 period, but most moves occur close to home. Overall, two types of movers emerge from the analysis ?ñ those who affirmatively plan to move and those who react to changing circumstances. As proxies for these two types, this study uses the presence or absence of a negative shock, such as death of a spouse or entry into a nursing home. Our results show that the factors that help determine a move are similar for both groups, while the consequences of a move vary. Homeowners with shocks are more likely to discontinue homeownership and reduce net equity, supporting the hypothesis that households may view housing wealth as insurance against catastrophic events. Finally, while movers in both groups of homeowners experience improvements in psychological well-being, movers with shocks are impacted most by the shocks themselves.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://crr.bc.edu/working-papers/determinants-and-consequences-of-moving-decisions-for-older-homeowners/
Download Restriction: no

Bibliographic Info

Paper provided by Center for Retirement Research in its series Working Papers, Center for Retirement Research at Boston College with number wp2009-16.

as in new window
Length: 42 pages
Date of creation: Jul 2009
Date of revision: Aug 2009
Handle: RePEc:crr:crrwps:wp2009-16

Contact details of provider:
Postal: Hovey House, 140 Commonwealth Avenue, Chestnut Hill, MA 02467
Phone: (617) 552-1762
Fax: (617) 552-0191
Email:
Web page: http://crr.bc.edu/
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. David A. Wise, 2004. "Introduction to "Perspectives on the Economics of Aging"," NBER Chapters, National Bureau of Economic Research, Inc, in: Perspectives on the Economics of Aging, pages 1-16 National Bureau of Economic Research, Inc.
  2. Farnham, Martin & Sevak, Purvi, 2006. "State fiscal institutions and empty-nest migration: Are Tiebout voters hobbled?," Journal of Public Economics, Elsevier, Elsevier, vol. 90(3), pages 407-427, February.
  3. Timothy Smeeding & Barbara Boyle Torrey & Jonathon Fisher & David S. Johnson & Joseph Marchand, 2006. "No Place Like Home: Older Adults and Their Housing," Working Papers, Center for Retirement Research at Boston College, Center for Retirement Research wp2006-16, Center for Retirement Research.
  4. Hui Shan, 2008. "Property taxes and elderly mobility," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 2008-50, Board of Governors of the Federal Reserve System (U.S.).
  5. David A. Wise, 2004. "Perspectives on the Economics of Aging," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number wise04-1.
  6. James Banks & Richard Blundell & Zoë Oldfield & James P. Smith, 2010. "Housing Price Volatility and Downsizing in Later Life," NBER Chapters, National Bureau of Economic Research, Inc, in: Research Findings in the Economics of Aging, pages 337-379 National Bureau of Economic Research, Inc.
  7. Alicia H. Munnell & Francesca Golub-Sass & Dan Muldoon, 2009. "An Update on 401(k) Plans: Insights From the 2007 SCF," Issues in Brief, Center for Retirement Research ib2009-9-5, Center for Retirement Research, revised Mar 2009.
  8. Katharine Anderson & Eric French & Tina Lam, 2004. "You can't take it with you: asset run-down at the end of the life cycle," Economic Perspectives, Federal Reserve Bank of Chicago, Federal Reserve Bank of Chicago, issue Q III, pages 40-54.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Kelly Haverstick & Natalia A. Zhivan, 2009. "Older Americans On The Go: How Often, Where, and Why?," Issues in Brief, Center for Retirement Research ib2009-9-18, Center for Retirement Research, revised Sep 2009.
  2. Esteban Calvo & Kelly Haverstick & Natalia A. Zhivan, 2009. "Older Americans On The Go: Financial and Psychological Effects of Moving," Issues in Brief, Center for Retirement Research ib2009-9-19, Center for Retirement Research, revised 2009.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:crr:crrwps:wp2009-16. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Grzybowski) or (Christopher F Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.