The Impact of Population Ageing on House Prices:

A Micro-simulation Approach

Yu Chen, Kenneth Gibb, Chris Leishman, Robert Wright

Research output: Working paperDiscussion paper

6 Citations (Scopus)
38 Downloads (Pure)

Abstract

This paper attempts to estimate the impact of population ageing on house prices. There is
considerable debate about whether population ageing puts downwards or upwards pressure
on house prices. The empirical approach differs from earlier studies of this relationship, which
are mainly regression analyses of macro time-series data. A micro-simulation methodology is
adopted that combines a macro-level house price model with a micro-level household
formation model. The case study is Scotland, a country that is expected to age rapidly in the
future. The parameters of the household formation model are estimated with panel data from
the British Household Panel Survey covering the period 1999-2008. The estimates are then
used to carry out a set of simulations. The simulations are based on a set of population
projections that represent a considerable range in the rate of population ageing. The main
finding from the simulations is that population ageing – or more generally changes in age
structure – is not likely a main determinant of house prices, at least in Scotland.
Original languageEnglish
Place of PublicationBonn
Number of pages27
Publication statusPublished - Jun 2012

Publication series

NameIZA DIscussion Paper
No.6688

Fingerprint

House prices
Microsimulation
Population aging
Simulation
Scotland
Household formation
British Household Panel Survey
Time series data
Age structure
Population projections
Methodology
Panel data

Keywords

  • house prices
  • scotland
  • population ageing

Cite this

Chen, Y., Gibb, K., Leishman, C., & Wright, R. (2012). The Impact of Population Ageing on House Prices: A Micro-simulation Approach. (IZA DIscussion Paper ; No. 6688). Bonn.
Chen, Yu ; Gibb, Kenneth ; Leishman, Chris ; Wright, Robert. / The Impact of Population Ageing on House Prices: A Micro-simulation Approach. Bonn, 2012. (IZA DIscussion Paper ; 6688).
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Chen, Y, Gibb, K, Leishman, C & Wright, R 2012 'The Impact of Population Ageing on House Prices: A Micro-simulation Approach' IZA DIscussion Paper , no. 6688, Bonn.

The Impact of Population Ageing on House Prices: A Micro-simulation Approach. / Chen, Yu; Gibb, Kenneth ; Leishman, Chris; Wright, Robert.

Bonn, 2012. (IZA DIscussion Paper ; No. 6688).

Research output: Working paperDiscussion paper

TY - UNPB

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Chen Y, Gibb K, Leishman C, Wright R. The Impact of Population Ageing on House Prices: A Micro-simulation Approach. Bonn. 2012 Jun. (IZA DIscussion Paper ; 6688).