Interest rates and lifestyle-driven moves for older adults: a vector autoregression analysis

Daniel G. Lindberg ()
Additional contact information
Daniel G. Lindberg: Marquette University - Department of Economics

Business Economics, 2024, vol. 59, issue 1, No 5, 39-50

Abstract: Abstract We examine the impact of interest rates on lifestyle-driven moves by older adults into independent living properties. Older adults often downsize for low-maintenance, accessible, homes, desiring a lifestyle and amenities according to their stage in life. Placing such transitions in a macroeconomic context using a Vector Autoregression approach, we find that positive interest rate shocks dampen independent living occupancy rates for four to five years. Shocks to the multifamily price index, which controls for an alternative housing setting, have a shorter-run positive impact on independent living occupancy rates. The findings underscore the significance of housing market conditions and interest rates when evaluating housing needs for older adults. Because seniors are a politically influential demographic, frictions in housing transitions could boost housing policy to the forefront of the nation’s political agenda.

Keywords: Age-restricted housing; Aging; Interest rates; Senior housing (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s11369-023-00344-0 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:buseco:v:59:y:2024:i:1:d:10.1057_s11369-023-00344-0

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11369

DOI: 10.1057/s11369-023-00344-0

Access Statistics for this article

Business Economics is currently edited by Charles Steindel

More articles in Business Economics from Palgrave Macmillan, National Association for Business Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().