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

Homeownership and Demand for Long-Term Care


Author Info

  • Jan Rouwendal

    (VU University Amsterdam)

  • Fleur Thomese

    (VU University Amsterdam)


Elderly home-owners get institutionalized less often than renters do. We hypothesize that housing tenure itself explains this behavior. Using longitudinal data from a Dutch community sample (N= 2,372) collected between 1992 and 2005, we find a negative effect of housing tenure on the probability of moving to a nursing home between two subsequent waves. This effect remains significant after controlling for health, socio-economic status and the presence of a partner and or children. We could not reduce this finding to a variety of explanations directly related to housing tenure. There was no substantial effect of higher payments for long-term care for wealthy people before 1997. Neither did we find evidence that home owners have a strategic bequest motive, and use their house to attract informal care from their children. We do find that homeowners use informal care-at-home to postpone or avoid institutionalization. Homeowners do not appear to live in houses more suitable to the needs of old age than renters, they do not have better social networks from which they can recruit informal caregivers. However, they express a greater satisfaction with their housing situation than renters, even if their health deteriorates. We therefore interpret our findings as the result of a strong desire among homeowners to stay where they are -in their own property- and better possibilities they have -as owners- to realize this desire.

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:
Download Restriction: no

Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 10-114/3.

as in new window
Date of creation: 12 Nov 2010
Date of revision: 04 Jan 2011
Handle: RePEc:dgr:uvatin:20100114

Contact details of provider:
Web page:

Related research

Keywords: home equity; health care; ageing; housing tenure; institutionalization;

Find related papers by JEL classification:


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. James Banks & Richard Blundell & Zoë Oldfield & James P. Smith, 2010. "Housing Price Volatility and Downsizing in Later Life," NBER Chapters, in: Research Findings in the Economics of Aging, pages 337-379 National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)



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


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:dgr:uvatin:20100114. 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: (Antoine Maartens (+31 626 - 160 892)).

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.