Paloma Taltavull de La Paz and Karen Martin Gibler
Large numbers of Northern European retirees have migrated to Southern European countries. A relevant part of this migration is not driven by work purposes but rather the desire to…
Abstract
Purpose
Large numbers of Northern European retirees have migrated to Southern European countries. A relevant part of this migration is not driven by work purposes but rather the desire to establish residence in a warmer country. These migrants come from different countries and exhibit diverse socioeconomic characteristics and preferences, including varying income levels, housing tastes and cultural habits, which could potentially influence the housing market in their host countries. This paper aims to examine the permanent impact of retiree migrant flows on house prices in Alicante, Spain, from 1988 to 2019, explicitly considering the impact related to the country of origin.
Design/methodology/approach
This paper examines the permanent impact of retiree migrant flows on house prices in Alicante, Spain, from 1988 to 2019, explicitly considering the impact related to the country of origin using panel cointegration – Dynamic Ordinary Least Squared (DOLS) models.
Findings
Results indicate that the long-term relationship captures the entire effect on house price change and that prices react immediately to the immigrants' presence with permanent effects. The results also suggest that the strong retiree migration flow created a shock in the housing market with different effects on house prices related to the immigrants' country of origin. The model identifies that when income growth in the origin country is slower than in Spain it has a major impact on house prices. When purchasing capacity is larger in Alicante than in the origin country it exerts a stronger effect on housing prices. Retiree migration flow has permanent effect on housing market prices.
Practical implications
Results indicate several ways to act on social and housing policies in specific cities in Alicante province, as well as in the origin countries, to alleviate potential disadvantages faced by expatriate retirees.
Originality/value
This paper finds evidence of the specific impact of international retiree migrants on the hosting housing market. This study is the first paper that can estimate the specific effect on housing prices from a flow of retiree migrants by country of origin.
Details
Keywords
Karen Martin Gibler, James R. Lumpkin and George P. Moschis
Factors such as retirement and declining health may trigger older Americans to move into retirement housing. Most mature consumers make this decision in consultation with their…
Abstract
Factors such as retirement and declining health may trigger older Americans to move into retirement housing. Most mature consumers make this decision in consultation with their family. Understanding the timing and decision‐making process is necessary to properly position and promote retirement housing. A national survey of retirement housing residents found that most moves were prompted by financial considerations, retirement, and health problems. Although most seniors made the final decision to move themselves, children and physicians were influencers. Thus, retirement housing must be promoted to family members and health care workers as well as potential residents.
Details
Keywords
Euehun Lee and Karen M. Gibler
The Republic of Korea is experiencing demographic, economic, and cultural changes that may create demand for seniors housing in the coming decades. The population is rapidly…
Abstract
The Republic of Korea is experiencing demographic, economic, and cultural changes that may create demand for seniors housing in the coming decades. The population is rapidly ageing; pension income is becoming more prevalent; and attitudes are changing about co‐residence. More people are expressing interest in housing that allows for privacy and independence from family members. These changes indicate potential demand for alternatives such as seniors housing. To help specify demand models for seniors housing in South Korea, a survey of urban residents aged 50 and older is presented to identify preferences among those who are planning to live in seniors housing. Results indicate higher income, healthy South Koreans are more likely to plan to live in seniors housing. They are interested in housing that provides personal care, home care, social, and security services, without the financial and physical maintenance burden of a traditional home.
Details
Keywords
Karen M. Gibler, José Manuel Casado‐Díaz, Mari Angeles Casado‐Díaz, Vicente Rodríguez and Paloma Taltavull
Many international retirement migrants are amenity movers undertaking the first move in the late life course model of migration. The purpose of this paper is to examine second…
Abstract
Purpose
Many international retirement migrants are amenity movers undertaking the first move in the late life course model of migration. The purpose of this paper is to examine second moves within the retirement destination community to test whether the model of late life course migration accurately portrays the motivations and housing choices local movers make after retiring to another country.
Design/methodology/approach
The paper combines secondary data and survey results to examine the composition of the retiree migrant population in the Alicante province of Spain. The socioeconomic characteristics and housing choices of those who have made a second move since retiring to Spain are compared with those who have not moved through a series of t‐tests and chi‐square tests.
Findings
The paper finds that those who have made a second move within Spain are somewhat typical of second movers in the late life course. They are likely to cite mobility or health problems as a reason for moving and appear to recognize the need for a home that provides living area on one floor. Yet, they are choosing to move within an area that does not provide them with access to informal family care givers.
Research limitations/implications
The data are restricted to retirees of two nationalities in one province of Spain. Further research is suggested in other locations and with retirees of other nationalities for comparison.
Practical implications
Because many international retirees do not plan to return to their countries of origin, they will create demand for formal in‐home care services and supportive retiree housing in the near future in their retirement destination countries.
Originality/value
This paper provides understanding of a growing consumer housing segment in retirement destinations.