‘The older adult’ doesn’t exist: using values to differentiate older adults in the Dutch housing market

Abstract

To date most prognoses of older adults in the housing market have been based on average housing preferences and average housing market behaviour of all persons in a certain age cohort. Due to socialcultural and social-economic dynamics, the relationship between age and housing is expected to change for successive cohorts. This study sets out to improve housing preferences estimates by recognizing the growing differentiation among older adults. This heterogeneity is analysed by differentiating older adults on their lifestyles (operationalized as values), using latent class analysis as a clustering technique. These analyses result in older adults being classified into five segments on the basis of their viewpoints, motivations and attitude. Next, for each lifestyle segment a separate discrete choice model is estimated, offering insight in the relative importance that these segments give to various housing attributes. The findings demonstrate advantages over a traditional, single model approach and can be helpful in formulating contemporary housing policy.