The price elasticity of senior housing demand: is it a necessity or a luxury?

Daniel G. Lindberg ()
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Daniel G. Lindberg: Applied Economic Insight LLC

Business Economics, 2022, vol. 57, issue 4, No 7, 204-216

Abstract: Abstract Senior housing properties provide tailored lifestyle, housing, and personal care services to aging adults. Having emerged from needs-based settings, senior housing is typically viewed as a necessity. As a result, demand estimates often rely on assumed utilization rates. We use monthly data beginning in 2017 to model occupied senior housing units as a function of price and a time trend. Our two-stage least squares approach provides an estimate of senior housing’s price elasticity of demand. Results show elasticity coefficients of greater than one, implying senior housing market is more of a luxury than a necessity.

Keywords: Elasticity; Senior; Housing; Retirement (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1057/s11369-022-00282-3

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