|Title||Aging, Property Taxes, and Housing Adjustments: Lessons From the Health and Retirement Study|
|Publication Type||Journal Article|
|Year of Publication||2021|
|Authors||Kim, J, Dawkins, C|
|Journal||Housing Policy Debate|
|Keywords||Aging, Housing Adjustments, Housing Tenure Choice, Property Tax Abatement Programs, property taxes|
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.