Lifecycle Theory and the Residential Mobility of Older Canadians

by Yuri Ostrovsky
Business and Labour Market Analysis Division
Canadian Journal on Aging, Vol. 23, Supplement 1, 2004

Context

It has been suggested in the economics literature that housing wealth may be viewed by households as an asset that will be used to support general consumption after retirement. In this case, we should observe a reduction in housing wealth after retirement, unless households are unable – due to the high financial and psychological costs of moving – to release their housing equity.

Objectives

The objective of the study is to highlight some of the issues in the economics debate about the housing decisions of older adults and examine the patterns of the residential mobility, tenure and dwelling-type transitions of older Canadians.

Findings

The study finds little empirical support for the proposition that households may rely on their housing wealth for post-retirement consumption.

Data Sources: SLID, 1996-2001.