Abstract Ageing of the population is an ineluctable process with major implications. We review effects of ageing on housing markets and related policy issues. Demographic effects are detectable for housing, with the working population tending to drive prices up while retired groups restrain it but only to a limited degree. The elderly desire bequests and precautionary saving and prefer not to sell or borrow against existing property. Among policy issues are availability of equity extraction loans, transaction costs for elderly households wishing to trade down and factors underlying availability of alternative and more suitable housing for elderly people.
Davis et al. (Tue,) studied this question.