Elderly interest in home equity conversion |
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| Authors: | Karen Martin Gibler Joseph Rabianski |
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| Affiliation: | 1. Assistant Professor and Chair of the Department of Business Studies, University College , Mercer University;2. Professor and Chair of the Department of Real Estate , Georgia State University |
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| Abstract: | Abstract Few elderly homeowners liquidate their home equity to fund consumption. This article examines whether attitudes about housing, independence, and finances affect a homeowner's interest in home equity conversion. The results of a nationwide survey of elderly homeowners were analyzed by logistic regression to ascertain the relationship between interest in home equity conversion and economic, demographic, and attitudinal characteristics. The results indicate that elderly homeowners most interested in home equity conversion own houses valued at $50,000 or less, are concerned about maintaining independence but not homeownership, and are not very concerned about future medical expenses. Thus, societal norms for maintaining single‐family homeownership and medical assistance programs that exempt home equity from requirements that participants spend all their assets to be eligible may be inhibiting the growth of home equity conversion programs. |
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