The dynamics of homeownership among the 50+ in Europe

We use life history data covering households in thirteen European countries to analyse residential moves past age 50. We observe four types of moves: renting to owning, owning to renting, trading up or trading down for home-owners. We find that in the younger group (aged 50-64) trading up and purchase decisions prevail; in the older group (65+), trading down and selling are more common. Overall, moves are rare, particularly in countries characterized by high transaction costs. Most moves are driven by changes in household composition (divorce, widowhood, nest-leaving by children), but economic factors play a role: low income households who are house-rich and cash-poor are more likely to sell their home late in life.