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http://dx.doi.org/10.22640/lxsiri.2018.48.1.35

Exploring housing consumption adjustment of pre-retirees after retirement using ordered probit model in terms of different housing size  

Lee, So-Young (Department of Real Estate, Konkuk University)
Kim, Ji-Hyun (Department of Real Estate, Hanyang Cyber University)
Choi, Youn-Young (Department of Youth Studies, Hanyang Cyber University)
Publication Information
Journal of Cadastre & Land InformatiX / v.48, no.1, 2018 , pp. 35-53 More about this Journal
Abstract
Recently, there is a growing interest in housing policy to prepare for the aging society. The purpose of this study is exploring the factors that explain housing consumption and adjustment of pre-retirees after retirement. 1,351 samples were collected from A bank and analyzed. There categories of housing consumption adjustment were considered including downsizing, maintain, and upsizing. Gender, educational level, housing size, housing type, asset size, and willingness to work after retirement were examined to see if they can explain the housing consumption adjustment of pre-retirees using orderd- probit model. The finding of this study is that housing size, asset size, and willingness to work after retirement statistically significantly explain the housing consumption adjustment. At specific, firstly, if the current size of the housing is relatively large, it is highly likely to downsize housing after retirement. Second, pre-retiree whose assets exceeded 1 billion won were more likely to scale up housing than assets of over 300 million to less than 500 million won. Lastly, unless there is absolutely no willingness to work after retirement, it is indicated that it intends to up-sizing consumption rather than down-sizing adjustment. The results of this study can provide useful information for the housing policy in order to prepare for the (post) aged society.
Keywords
Retirement; Housing Consumption Adjustment; Down-sizing; Ordered Probit Model;
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