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The dynamics of homeownership among the 50+ in Europe

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  • Viola Angelini
  • Agar Brugiavini
  • Guglielmo Weber

    ()

Abstract

We use life history data covering households in 13 European countries to analyse residential moves past the age of 50. We observe four types of moves: renting to owning, owning to renting, trading up or trading down for homeowners. We find that in the younger group (aged 50–64), trading up and purchase decisions prevail; in the older group (65+), trading down and selling are more common. Overall, moves are rare, particularly in countries characterised by high transaction costs. Most moves are driven by changes in household composition (divorce, widowhood, nest leaving by children), but economic factors play a role: low-income households who are house-rich and cash-poor are more likely to sell their home late in life. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Viola Angelini & Agar Brugiavini & Guglielmo Weber, 2014. "The dynamics of homeownership among the 50+ in Europe," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 797-823, July.
  • Handle: RePEc:spr:jopoec:v:27:y:2014:i:3:p:797-823
    DOI: 10.1007/s00148-013-0477-5
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    References listed on IDEAS

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    Cited by:

    1. Renuka Sane & Susan Thomas, 2015. "In Search of Inclusion: Informal Sector Participation in a Voluntary, Defined Contribution Pension System," Journal of Development Studies, Taylor & Francis Journals, vol. 51(10), pages 1409-1424, October.
    2. Mirco Tonin & Michael Vlassopoulos, 2015. "Are public sector workers different? Cross-European evidence from elderly workers and retirees," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-21, December.
    3. Daniele Vignoli & Maria Letizia Tanturri & Francesco Acciai, 2014. "Home Bitter Home? Gender, Living Arrangements, and the Exclusion from Home-Ownership among Older Europeans," Econometrics Working Papers Archive 2014_05, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    4. Costin CIORA, 2015. "Housing affordability in Romania. Towards quantifying the trends," Romanian Journal of Economics, Institute of National Economy, vol. 40(1(49)), pages 126-137, june.
    5. Cristian Badarinza & John Y. Campbell & Tarun Ramadorai, 2016. "International Comparative Household Finance," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 111-144, October.
    6. Evren Ceritoglu, 2017. "Disentangling Age and Cohorts Effects on Home-Ownership and Housing Wealth in Turkey," Working Papers 1706, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    7. Agnese Romiti & Mariacristina Rossi, 2014. "Wealth decumulation, portfolio composition and financial literacy among European elderly," Carlo Alberto Notebooks 375, Collegio Carlo Alberto.
    8. Hofmann, Maurice & Fehr, Hans, 2018. "Tenure Choice, Portfolio Structure and Long-term Care - Optimal Risk Management in Retirement," Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181517, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    Housing; Life cycle; Ageing; SHARELIFE; D91; E21; J14;

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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