Determinants of housing preferences in old age in Spain

Abstract

Ageing and disability at old age give rise to new housing needs that can influence individual choice of living environment and preference to undertake housing improvements. Empirical evidence on housing preferences in old age is essential for policy design (especially in Spain with low coverage for long-term care and culture of property). In this study we undertake an empirical analysis of the underlying behavioural determinants of housing preferences in old age in the event of dependency and physical impairment. It draws upon a new representative database of the Spanish population in order to estimate the extent to which preferences for housing characteristics are likely to change in old age, and the nature of those preferences. The study finds that old age, prefer to live at home even in the case of old-age dependency and this is so the older they become. People with less wealth but more savings and/or greater dependency needs are more likely to opt for institutional care, whilst people with lesser education, affluence and care (not cure) needs would prefer to live with their relatives.