Transcript Baby boomers and housing inheritance

‘Baby boomers and housing inheritance’
A research thesis towards completion of M.A. (Applied)
Social Science Research
Bill Murdoch
Victoria University of Wellington
2008
‘Baby boomers and housing inheritance’
Two inter-related factors:
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Structural ageing of society.
Home ownership.
The research explores how these factors are associated with baby boomers
and wealth transference from housing inheritance.
‘Baby boomers and housing inheritance’
Projected population by age group - 2006 base
40
35
30
0–14
25
%
15–39
20
40–64
15
65+
10
5
0
2011
2016
2021
2026
2031
2036
year
2041
2046
2051
2056
2061
‘Baby boomers and housing inheritance’
Unadjusted Home Ownership Rates
Age Group
1991
1996
2001
2006
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65 & over
26.5
53.6
68.8
76.1
80.8
83.0
84.1
85.3
85.8
82.9
24.7
45.9
62.3
71.5
77.0
80.9
82.5
83.4
83.9
81.6
22.9
40.9
56.3
65.7
71.7
76.0
79.4
80.2
80.4
80.0
21.7
36.3
52.6
61.9
68.5
73.7
77.8
80.5
81.2
79.5
Total
73.8
70.7
67.8
66.9
Source: DTZ New Zealand - Statistics New Zealand (2007)
‘Baby boomers and housing inheritance’
‘Baby boomers and housing inheritance’
Research question:
What are the socio-economic implications of housing inheritance for the
baby boomer generation?
Research aim:
To understand the attitudes and expectations of New Zealanders, aged
between 41 and 61 years, towards housing inheritance.
‘Baby boomers and housing inheritance’
Research objectives:
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
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To explore whether housing inheritance contributes to class
divisions in society.
To ascertain if the expectation of receiving a housing inheritance
affects a person’s financial behaviour with respect to their own
retirement planning.
To ascertain whether there is a ‘generational contract’ between baby
boomers and their parents relating to the provision of care and
housing inheritance.
To understand baby boomers’ attitude towards the use of equity
accrued in the family home.
To understand baby boomers’ attitude regarding intergenerational
transfers to their own children.
‘Baby boomers and housing inheritance’
Theoretical orientation:
 Constructionism.
 Critical inquiry.
Used to explore the meaning of home ownership and housing
inheritance.
Research methodology:
 Structure and agency - Giddens and Bourdieu.
Used to examine the significance of the relationship between
institutional structures and individual agency.
 Focus groups.
Method of data collection.
‘Baby boomers and housing inheritance’
Method - focus groups:
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Male and female.
New Zealand Europeans.
41 to 61 years.
Snowball sampling.
Upper Hutt, Porirua, Wellington City.
August and September 2007.
‘Baby boomers and housing inheritance’
Findings.
Class divisions in society:

Class divisions, home ownership levels and structural ageing.

Class divisions and education.

Class divisions and individualism.
‘Baby boomers and housing inheritance’
Findings.
Elder care and inter-generational contracts:
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Provision of care.
Intergenerational contracts.
Savings and housing inheritance:
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The more advantaged cohort.
Financial planning for retirement.
‘Baby boomers and housing inheritance’
Findings.
Intergenerational transfers:
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Lifetime transfers.
Power.
Traditionalism.
Home equity release:
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Use home equity for life style and well-being.
‘Baby boomers and housing inheritance’
Conclusion:
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Fluidity between traditional and modern values.
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Mass wealth transfer a one-off aberration unique to baby boomers.
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From self-sacrifice to self-interest.
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Support needed for baby boomers’ children.
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Increase family social capital.