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Effect of Aging on Housing Prices: A Perspective from an Overlapping Generation Model

Tianyu Sun, Satish Chand and Keiran Sharpe

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the effect of aging on housing prices. It provides a theoretical explanation to address the on-going debate about this issue. The analysis demonstrates that aging has divergent effects on housing prices, depending on the net effects of a fall in fertility vis-à-vis a rise in longevity on demand for housing. In addition, the results suggest that aging could cause a turning point in the price dynamics. Before this turning point, aging would boost the prices; however, after this point, the prices are depressed because of aging. Furthermore, inequality of household utility is enlarged during the aging processes.

Keywords: Aging Population; OLG Model; House Prices; Land Prices; Turning Point (search for similar items in EconPapers)
JEL-codes: E21 E31 J11 R21 R31 (search for similar items in EconPapers)
Date: 2018-02-10
New Economics Papers: this item is included in nep-age, nep-dge, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
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