Housing cost burden and life satisfaction

Author(s):  
Arthur Acolin ◽  
Vincent Reina
Author(s):  
Wilfried Altzinger ◽  
Emanuel List

This article presents an empirical analysis of the housing costs of Austrian households and the resulting financial burden for homeowners and renters. On average homeowners have significantly higher incomes than households that rent their main residence. In addition, the housing costs for homeowners are also lower in absolute terms, even if a current loan is still being paid off. Thus, the relative housing cost burden as a share of disposable income is much lower for homeowners than for renters. Consequently, the inclusion of housing costs leads to an increased inequality of disposable income (after deducting housing costs). The data also show that subsidized tenants have a comparatively lower housing cost burden than non-subsidized tenants. This finding is also confirmed by econometric exercises, which further show that housing costs represent an above-average burden for young households, singles and especially single parents. Housing policy measures designed to reduce the burden of the households most affected by high housing costs should therefore primarily focus on supporting renters.


2019 ◽  
Vol 3 (Supplement_1) ◽  
pp. S938-S938
Author(s):  
Ji Hyang Cheon ◽  
John Cagle ◽  
Amanda Lehning

Abstract Self-rated health is a multidimensional construct that includes not only physical health but also emotional and social well-being. Previous research has demonstrated that multiple factors contribute to individual self-rated health, including income. Because income is a somewhat limited indicator of older adults' financial circumstances, alternative measures such as housing cost burden may enhance our understanding of contributors to self-rated health. Further, because homeowners and renters may have a different attachment to their home and neighborhood, homeownership may moderate the association between housing cost burden and self-rated health. This study examined these relationships using data from 3,212 older adults in round 7 (2017) of the National Health & Aging Trends Study. Findings from multiple linear regression models indicate that the housing cost burden is associated with lower self-rated health, and this association is stronger for renters compared to homeowners. The findings indicate the potential for reduced housing cost burden to have a positive effect on health. The poster will conclude with practice and policy implications, including the potential benefits of expanding rental assistance programs to older adults who may not meet current income requirements but are experiencing high housing cost burden, as well as research implications, including the need for longitudinal approaches.


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