The National Board of Economic Research featured the paper “Access to Long-Term Care After a Wealth Shock: Evidence From the Housing Bubble and Burst” by health care policy and Harvard Medical School Margret T. Morris professor Richard G. Frank, PhD, and colleagues Joan Costa-i-Font, PhD, of London School of Economics and Political Science, and Katherine Swartz, PhD, of Harvard T.H. Chan School of Public Health.

The paper investigates the impact of housing value on the use of various forms of long-term services and supports. A positive wealth shock shows an increase in in-home care, however those that lose value in their homes are more likely to choose a nursing home or depend on a family member to care for them.

Older adults hold the vast majority of their wealth in the value of their homes. “Property is generally the last resource liquidated, and the liquidation timing has been shown to depend on people’s health."

Selling of a home by older adults is motivated by health, not age.

Enjoy content like this? Sign up for our newsletter and follow HCP on Twitter.