title: Housing wealth, psychological well-being, and cognitive functioning of older Americans.
abstract: OBJECTIVE
  Economic security around retirement age may be an important determinant of psychological and cognitive well-being of older adults. This study examines the impact of the dramatic increase in housing prices from the mid-1990s to the mid-2000s on psychological and cognitive outcomes among Americans born between 1924 and 1960.
  
  
  METHODS
  Our quasi-experimental empirical strategy exploits geographic differences in housing market price trends during the housing boom (from the mid-1990s until 2006). We use individual-level data from the Health and Retirement Study (HRS) and estimates of housing values from DataQuick, a California-based real estate consultancy firm, to estimate the association of housing price increases with psychological and cognitive outcomes at follow-up.
  
  
  RESULTS
  Greater housing appreciation over the follow-up period was associated with a significantly lower risk of anxiety (for women) and an improved performance on some but not all cognitive tasks. Effects for depressive symptoms, positive and negative affect, and life satisfaction were all in the beneficial direction but not statistically significant. The effects of price run-ups were concentrated on homeowners, as opposed to renters, suggestive of wealth-driven effects.
  
  
  CONCLUSIONS
  Housing market volatility may influence the psychological and cognitive health of older adults, highlighting potential health consequences of pro-home ownership policies, which may be especially important in light of recent dramatic housing price declines.
authors: Correspondence should be addressed to Jennifer Beam Dowd, Epidemiology and Biostatistics at Hunter College, CUNY School of Public Health, CUNY Institute for Demographic Research, New York 10010. E-mail: jdowd@hunter.cuny.edu.
authors: Amar
authors: A
authors: Hamoudi
authors: Jennifer Beam
authors: JB
authors: Dowd
mesh_terms: D000368:Aged; D000375:Aging / Q000523:psychology*; D003071:Cognition / Q000502:physiology*; D003072:Cognition Disorders / Q000191:economics* / Q000523:psychology; D003704:Dementia / Q000191:economics / Q000523:psychology; D003863:Depression / Q000191:economics / Q000523:psychology; D005260:Female; D015577:Geriatric Assessment; D006306:Health Surveys; D006798:Housing / Q000191:economics*; D006801:Humans; D008137:Longitudinal Studies; D008297:Male; D008568:Memory / Q000502:physiology; D008603:Mental Health / Q000191:economics*; D008875:Middle Aged; D012306:Risk; D012959:Socioeconomic Factors
keywords: Cognition; Housing; Mental health; Psychological health; Socioeconomic status; Wealth.