The Relationship Between Homeowner Age and House Price Appreciation
Based on estimations from the Health and Retirement Survey (HRS), the house values of elderly (75 years or more) owners appreciate in real terms at 1.0 to 1.2 percentage points less per year than the houses of middle-aged (50 to 74 year old) owners. These estimates are smaller than the findings by Davidoff (2004) who used the American Housing Survey to show 3 percentage point slower appreciation for owners aged more than 75 relative to all other owners. Using Census microdata on non-longitudinal data (1990 and 2000), the estimate is 2.4 percentage point slower appreciation. The conclusion is that elderly homes appreciate in real terms at 1 to 3 percentage points slower than their local markets.