1. Elderly and housing costs
Constraints in mobility on the housing market
M. Leussink
J. Smeets

2. Content Introduction Housing costs To move or not to move
Push, pull & keep factors
Discussion

3. Introduction (1)
One of the goals of the Dutch policy is to stimulate elderly people to live
independently as long as possible (up to years old).
Especially Housing Associations have the task to accommodate these
elderly households in combination with services (‘live and care’-concepts).
Not only the households in the rental sector belong to their target groups,
but also elderly households in the owner occupied sector.
The question is:
Are they willing to move?
What are the reasons to move or not to move?

4. Introduction (2) Forecasted development of senior citizens
in region Eindhoven (Province Noord-Brabant)
shows that the target group growth rapidly.

5. Introduction (3) This presentation is mainly based on three surveys:
A survey among tenants and owners about their housing costs in the region of Eindhoven providing insight in the affordability of housing.
[Leussink & Smeets, 2012]
A research of Van Ginkel among elderly households to get insight in the significance of push, keep and pull factors in the decision to move or stay.
[Van Ginkel, 2012]
A tri-annual housing survey among inhabitants of South East Brabant.
[SRE, 2011]

6. Housing costs (1)
The housing costs of households are not only determined by rent or mortgage but also by dwelling-related costs.
pag2

7. Housing costs (2)
Dwelling related costs as energy have increased continuously and will increase in the future.

8. Housing costs (3) Population:
Social rental sector: Households in affordable dwellings (rent < €652,52/month)
Owner-occupied sector: Households in affordable dwellings
(purchase price < € )
Respondents:
Social rental sector: N=910
Owner-occupied sector: N=580

9. Housing costs (4) Elderly households in: - Social rental sector: 55%
social rental sector
owner occupied sector
Households N %
single <30 years 35 4% 6%
couple <30 years 32 42 7%
single years
130
14% 83
couple years 53 9%
family
103
11%
162
28%
single-parent family 74 8% 27 5%
single years
186
20% 58
10%
couple years
156
17%
100
single >74 years 91 7 1%
couple >74 years 68 13 2%
total
910
100%
580
Elderly households in:
- Social rental sector: 55%
- Owner occupied sector: 31%

10. Housing costs (5)
Specified housing costs by type of households in social rental sector

11. Housing costs (6)
Specified housing costs by type of households in owner occupied sector

12. Housing costs (7)
Housing costs quota* by type of households in social rental sector
* Ratio of current housing costs/disposable income

13. Housing costs (8)
Housing costs quota* by type of households in owner occupied sector
* Ratio of current housing costs/disposable income

14. Housing costs (9)
Housing costs of young elderly (55-74) and elderly (>74) households in..
..social rental sector: owner occupied sector:

15. Housing costs (10)
Total housing costs in social rental and owner occupied sector during
course of life:

16. To move or not to move (1)
Housing costs of elderly people in the rental sector are substantial higher
then in the owner occupied sector.
A shift from the owner occupied sector toward the rental sector has
-among others- cost implications for the household.
Are elderly people willing to move and what are the push, keep and pull
factors?

17. To move or not to move (2)
In general: only 14% of the elderly households is willing to move within two years (PBL, 2013).
Keep factors are [Planbureau voor de leefomgeving, 2013; “Vergrijzing en woningmarkt”]:
moving does not lead to an improvement of the housing situation [Schellekens 2010, Van Iersel et al., 2009]
resistance against moving increases with age [Huff & Clark, 1978]
attachment to dwelling and direct environment increases with age [Filius 1993; Van der Meer 2006; Smith 2009]
higher total housing costs in the rental sector can owners do decide not to move to that sector
[Leussink & Smeets, 2012]

18. To move or not to move (3)
Motives to move
starters
door-stromers
<30
30-44
45-54
55-64
65-74
>75
total
work/study
10% 4% 5% 2% 1% 0% 6%
want to live independently
68%
46%
20%
changed personal circumstances (living together, marriage, birth, divorce etc)
16%
22%
26%
25%
11%
(expected) fysical limitations/need for care due to age or sickness
18%
12%
35%
65%
13%
want to go back to place of birth
quality of current dwelling doesn't meet needs anymore
14% 9% 3%
quality of current living environment doesn't meet needs anymore 8%
other reason
27%
34%
32%
[SRE: Woonbehoeftenonderzoek Zuidoost-Brabant 2011]
The main push motive for elderly to move is fysical limitations/need for care.

19. To move or not to move (4)
In general those who are willing to move are looking less for an owner-occupied property (59% in 2007; 49% in 2011).
Especially for elderly households a rental dwelling can be a pull factor.
Owner occupied
property
Land to build
Rental home

20. To move or not to move (5) Economic crisis and governmental plans:
Constraints to move (SRE, 2011):
Economic crisis and governmental plans:
No/not enough mortgage
Expected problems selling current dwelling
Uncertainty about mortgage interest relief (tax benefit)
Uncertainty about working situation
Finding a social rental dwelling is harder because of income limitations

21. Push, pull & keep factors (1)
Rental
sector
Push
Pull
Keep
Dwelling
Overall size
Total housing cost
Number of bedrooms
Outdoor space
Type of the dwelling
Total housing costs
Size dwelling
Dwelling entry
Attachment to the dwelling
Neigbour-hood
Behaviour neigbours
Attachment and contact with neighbours
Accessibility of the dwelling
Quality of the residential
area
Parking facilities
Green space
Facilities
Accessibility of public transport
Accessibility of facilities
Accessible retail facilities Accessible medical facilities
Availability of transport
Accessibility of retail facilities
Accessibility of medical facilities
Services
Service to move house
Maintenance service
Dwelling adjustment
Source: Van Ginkel 2012

22. Push, pull & keep factors (2)
Owner occupied sector
Push
Pull (rental)
Keep
Dwelling
Overall size
Number of bedrooms
Outdoor space
Type of the dwelling
Size dwelling
Total housing cost
Dwelling entry
Attachment to the dwelling
Neigbour-hood
Behaviour neigbours
Attachment and contact with neighbours
Accessibilty of the dwelling
Quality of the residential
area
Accessibility of the dwelling
Parking facilities
Green space
Facilities
Accessibility of public transport
Accessibility of facilities
Accessible retail facilities Accessible medical facilities
Availability of transport
Accessibility of retail facilities
Accessibility of medical facilities
Services
Service to move house
Maintenance service
Dwelling adjustment

23. Discussion (1) The tendency to move among elderly people is small.
A housing policy that is based on the assumption that elderly will move to
‘live and care’ dwellings in the rental sector and will create space for
younger movers on the market will fail.
The keep factors for elderly households are strong. Elderly people will live
independently as long as possible anyway.

24. Discussion (2)
The low housing costs of owner occupiers is a strong keep factor.
Those who are willing to move expect problems selling current dwelling.

25. Discussion (3)
However the next generation of elderly will have higher housing cost.
(interest-only mortgages, second mortgage).
Costs as a keep factor will be less significant.
The other keep factors (dwelling type, attachment, facilities) however
will also be of importance for them.

26. Thank you for your attention!