elderly and housing costs

Elderly and housing costsConstraints in mobility on the housing market

M. Leussink

J. Smeets

Elderly and housing costs

Content

• Introduction

• Housing costs

• To move or not to move

• Push, pull & keep factors

• Discussion


Introduction (2)

Forecasted development of senior citizens

in region Eindhoven (Province Noord-Brabant)

shows that the target group growth rapidly.


Introduction (3)

This presentation is mainly based on three surveys:• A survey among tenants and owners about their housing costs in the

region of Eindhoven providing insight in the affordability of housing. [Leussink & Smeets, 2012]

• A research of Van Ginkel among elderly households to get insight in the significance of push, keep and pull factors in the decision to move or stay.

[Van Ginkel, 2012] • A tri-annual housing survey among inhabitants of South East Brabant. [SRE, 2011]


pag2

Housing costs (1)

The housing costs of households are not only determined by rent or mortgage but also by dwelling-related costs.


Housing costs (2)

Dwelling related costs as energy have increased continuously and will increase in the future.


Housing costs (3)

Population:Social rental sector: Households in affordable dwellings

(rent < €652,52/month)Owner-occupied sector: Households in affordable dwellings

(purchase price < €250.000) Respondents:Social rental sector: N=910Owner-occupied sector: N=580


social rental

sectorowner occupied

sectorHouseholds N % N %single <30 years 35 4% 35 6%couple <30 years 32 4% 42 7%single 30-54 years 130 14% 83 14%couple 30-54 years 35 4% 53 9%family 103 11% 162 28%single-parent family 74 8% 27 5%single 55-74 years 186 20% 58 10%couple 55-74 years 156 17% 100 17%single >74 years 91 10% 7 1%couple >74 years 68 7% 13 2%total 910 100% 580 100%

Elderly households in: - Social rental sector: 55%- Owner occupied sector: 31%

Housing costs (4)


Housing costs (5)

Specified housing costs by type of households in social rental sector


Housing costs (6)

Specified housing costs by type of households in owner occupied sector


Housing costs (7)

Housing costs quota* by type of households in social rental sector

* Ratio of current housing costs/disposable income


Housing costs (8)

Housing costs quota* by type of households in owner occupied sector

* Ratio of current housing costs/disposable income


Housing costs (9)

Housing costs of young elderly (55-74) and elderly (>74) households in..

..social rental sector: ..owner occupied sector:


Housing costs (10)

Total housing costs in social rental and owner occupied sector during

course of life:


To move or not to move (1)

Housing costs of elderly people in the rental sector are substantial higher

then in the owner occupied sector.

A shift from the owner occupied sector toward the rental sector has

-among others- cost implications for the household.

Are elderly people willing to move and what are the push, keep and pull

factors?



In general: only 14% of the elderly households is willing to move within two years (PBL, 2013).

Keep factors are [Planbureau voor de leefomgeving, 2013; “Vergrijzing en woningmarkt”]:•moving does not lead to an improvement of the housing situation [Schellekens 2010, Van Iersel et al., 2009] •resistance against moving increases with age [Huff & Clark, 1978]

•attachment to dwelling and direct environment increases with age [Filius 1993; Van der Meer 2006; Smith 2009]

•higher total housing costs in the rental sector can owners do decide not to move to that sector

[Leussink & Smeets, 2012]



[SRE: Woonbehoeftenonderzoek Zuidoost-Brabant 2011]

Motives to move startersdoor-

stromers <30 30-44 45-54 55-64 65-74 >75 totalwork/study 10% 4% 10% 5% 2% 1% 1% 0% 6%want to live independently 68% 0% 46% 6% 0% 1% 1% 0% 20%changed personal circumstances (living together, marriage, birth, divorce etc) 16% 22% 22% 26% 25% 11% 6% 1% 20%(expected) fysical limitations/need for care due to age or sickness 0% 18% 0% 1% 12% 35% 65% 68% 13%want to go back to place of birth 0% 5% 2% 6% 6% 5% 2% 2% 4%quality of current dwelling doesn't meet needs anymore 2% 14% 9% 18% 11% 5% 4% 3% 10%quality of current living environment doesn't meet needs anymore 1% 11% 3% 13% 10% 10% 4% 9% 8%other reason 2% 27% 8% 26% 34% 32% 18% 16% 20%

The main push motive for elderly to move is fysical limitations/need for care.



In general those who are willing to move are looking less for an owner-occupied property (59% in 2007; 49% in 2011).Especially for elderly households a rental dwelling can be a pull factor.

Owner occupied property

Land to build

Rental home



Constraints to move (SRE, 2011):

Economic crisis and governmental plans:•No/not enough mortgage•Expected problems selling current dwelling•Uncertainty about mortgage interest relief (tax benefit)•Uncertainty about working situation•Finding a social rental dwelling is harder because of income limitations


Rentalsector

Push Pull Keep

Dwelling Overall sizeTotal housing costNumber of bedroomsOutdoor space

Type of the dwellingTotal housing costsSize dwellingNumber of bedroomsOutdoor space

Type of the dwellingOutdoor spaceDwelling entryNumber of bedroomsOverall size Attachment to the dwelling

Neigbour-hood

Behaviour neigboursAttachment and contact with neighbours

Accessibility of the dwellingQuality of the residential area

Accessibility of the dwelling Parking facilitiesGreen space

Facilities Accessibility of public transportAccessibility of facilities

Accessibility of public transport Accessible retail facilities Accessible medical facilities

Availability of transport Accessibility of retail facilities Accessibility of medical facilities

Services Service to move houseMaintenance serviceDwelling adjustment

Dwelling adjustmentMaintenance service

Source: Van Ginkel 2012

Push, pull & keep factors (1)


Owner occupied sector

Push Pull (rental) Keep

Dwelling Overall sizeNumber of bedroomsOutdoor space

Type of the dwellingSize dwellingNumber of bedroomsOutdoor space

Total housing cost Type of the dwellingOutdoor spaceDwelling entryNumber of bedroomsOverall size Attachment to the dwelling

Neigbour-hood Behaviour neigboursAttachment and contact with neighbours

Accessibilty of the dwellingQuality of the residential area

Accessibility of the dwelling Parking facilitiesGreen space

Facilities Accessibility of public transportAccessibility of facilities

Accessibility of public transport Accessible retail facilities Accessible medical facilities

Availability of transport Accessibility of retail facilities Accessibility of medical facilities

Services Service to move houseMaintenance serviceDwelling adjustment

Dwelling adjustmentMaintenance service

Push, pull & keep factors (2)


Discussion (1)

The tendency to move among elderly people is small.

A housing policy that is based on the assumption that elderly will move to

‘live and care’ dwellings in the rental sector and will create space for

younger movers on the market will fail.

The keep factors for elderly households are strong. Elderly people will live

independently as long as possible anyway.


Discussion (2)

The low housing costs of owner occupiers is a strong keep factor.

Those who are willing to move expect problems selling current dwelling.


Discussion (3)

However the next generation of elderly will have higher housing cost.

(interest-only mortgages, second mortgage).

Costs as a keep factor will be less significant.

The other keep factors (dwelling type, attachment, facilities) however

will also be of importance for them.


Thank you for your attention!

Email: [email protected]

elderly and housing costs

Documents

housing costs of households

housing costshousing

housing costs of young

specified housing costs

housing costs quota

total housing costs

housing costspag2housing

planning elderly