There's No Place Like Home

Abstract

Elderly housing surveys consistently report that older Americans prefer to remain living in their homes for as long as they are physically able. This study uses hazard models to estimate the effects of family composition changes, health conditions, housing characteristics, and local policies and amenities on aging-in-place decisions by older homeowners in the 1972-1992 Panel Study of Income Dynamics. The empirical results show that increases in property taxes and utility costs, changes in family composition, and diminished physical well-being are negatively associated with aging in place. Increased home equity, greater financial resources, and stronger ties to the community are positively associated with aging in place. Taken together, these findings suggest that policies designed to reduce the user costs of homeownership or to enhance the functionality of elderly homeowners may facilitate aging in place.