Effect of Aging on Housing Prices: A Perspective from an Overlapping Generation Model
Satish Chand and
MPRA Paper from University Library of Munich, Germany
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)
New Economics Papers: this item is included in nep-age, nep-dge, nep-mac and nep-ure
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https://mpra.ub.uni-muenchen.de/94419/1/MPRA_paper_94419.pdf revised version (application/pdf)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:89347
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