NC State Economist Mike Walden: Housing Wealth and Home Health Care

One of the factors leading up to the Great Recession was the unprecedented run-up in residential housing prices.  With the benefit of hindsight we can blame speculation for some of the price rise.  But were there some positive outcomes also?

  1. Certainly homeowners who were able to sell before their prices crashed benefited
  2. But new research shows perhaps another unexpected benefit
  3. Elderly homeowners who were able to convert some of their price gains to cash and used it to hire home health care services
  4. Research shows a rise in this kind of activity during the housing boom
  5. These services allow elderly homeowners to receive professional care in their home rather than going to a hospital or nursing home
  6. Of course, when home prices plunged, this activity dropped – and unfortunately, some homeowners had trouble paying the loan
  7. But shows the widespread implications of the housing market