Housing Mobility and Downsizing at Older Ages in Britain and the United States

James Banks, Richard Blundell (), Zoe Oldfield and James P. Smith
Additional contact information
James P. Smith: RAND

No 5168, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the effects of housing price risk on housing choices over the life-cycle. Housing price risk can be substantial but, unlike other risky assets which people can avoid, the fact that most people will eventually own their home creates an insurance demand for housing assets early in life. Our contribution is to focus on the importance of home ownership and housing wealth as a hedge against future house price risk for individuals moving up the ladder – people living in places with higher housing price risk should own their first home at a younger age, should live in larger homes, and should be less likely to refinance. These predictions are tested and shown to hold using panel data from the United States and Great Britain.

Keywords: migration; downsizing (search for similar items in EconPapers)
JEL-codes: D12 D91 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2010-09
New Economics Papers: this item is included in nep-age, nep-mig and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Published - published in: Economica, 2012, 79 (313), 1-26

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Working Paper: Housing Mobility and Downsizing at Older Ages in Britain and the United States (2010)
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