Aging, Property Taxes, and Housing Adjustments: Lessons From the Health and Retirement Study

TitleAging, Property Taxes, and Housing Adjustments: Lessons From the Health and Retirement Study
Publication TypeJournal Article
Year of Publication2021
AuthorsKim, J, Dawkins, C
JournalHousing Policy Debate
Volume31
Issue6
Pagination947-966
ISBN Number1051-1482
KeywordsAging, Housing Adjustments, Housing Tenure Choice, Property Tax Abatement Programs, property taxes
Abstract

The U.S. housing market is being reshaped by the housing decisions of seniors aged 65 and older. This study examines the reasons why senior homeowners choose to move, downsize, and transition out of homeownership, placing particular emphasis on the role of property taxes and property tax abatement programs. Our findings suggest that although rising property taxes increase the probability that senior homeowners will become renters or downsize, property tax abatement programs seem to have largely failed to help low-income senior homeowners remain in their homes. High-income seniors receive a modest transfer from property tax abatement programs and continue owning their homes when moving, whereas low-income seniors transition from owning to renting when moving, even in places with generous property tax abatement programs. The U.S. senior population will grow significantly over the next several decades, and policymakers will need to design effective policies to create stable, affordable housing environments for seniors aged 65 and older. Our findings provide evidence to inform this effort.

DOI10.1080/10511482.2021.1887319
Citation Key11600