Stereotypically, old age has been viewed as a time of reduced income, incapacity, frailty and dependency. This perspective has directed the development of policies and planning for an older population and resulted in a focus on the provision of retirement incomes and the delivery of care. Often, little attention has been directed to other aspects of life, such as the suitability of housing and the functioning of the communities in which older people live. This common image of old age is at odds with contemporary trends, as the citizens of advanced economies live longer than ever before, enjoy a better quality of health, are wealthier, more active and more aspirational than previous generations of older people. These trends will only accelerate over the next two to three decades. Older age in the 21st century will be very different from older age in the 20th century and there is consequently a pressing imperative to move away from a view of old age as a period of frailty and dependency and instead focus on understanding the needs and wants of older individuals. For many in older age, housing decisions are likely to be governed by consumption factors and choices rather than ill-health, disability and social isolation. Overall, the housing market positions and transitions of those in later life are changing, and this transformation is increasingly important for the whole of society as the housing demanded by the older population will drive housing markets, housing policy and welfare support measures.

Conventional and emerging housing transitions for older households

For much of the 20th century older people who had left the workforce were either seen as not having a housing career or were considered to be at the end of their engagement with the housing market, with only retrograde movement in prospect. The circumstances of the time-limited lifespan after retirement, few resources and therefore modest aspirations, generally meant housing in older age was a matter of staying put and effectively ageing in the family home. Housing and care of older people was the domain of the family and those with no or limited resources had to rely on charitable organisations and state institutions where the quality of accommodation and care was of variable quality (McNelis and Herbert, 2003).