How Housing Stress Affect Health Care Costs: A Panel Data Study

Area of Science:

• Economics
• Public Health
• Sociology

Background:

• Escalating housing prices in China and the "personal unlimited liability system" for mortgages exacerbate family financial stress.
• This financial strain negatively impacts physical and mental health, consequently increasing healthcare expenditures.

Purpose of the Study:

• To empirically investigate the influence of housing stress on household healthcare costs.
• To analyze the mediating roles of family income and health status in this relationship.

Main Methods:

• Panel data analysis using the China Family Panel Study (CFPS) database.
• Application of a panel two-way fixed effect model and a mediating effect model.
• Validation through robustness tests and propensity score matching (PSM) to address endogeneity.

Main Results:

• A significant positive correlation exists between housing stress and healthcare costs (1% point increase in housing stress elevates costs by 0.141%).
• Housing stress mediates increased healthcare costs by reducing disposable income (-1.749) and declining health status (-0.468).
• The impact of housing stress on healthcare costs is more pronounced in western, eastern, urban, and rental households.

Conclusions:

• Policy interventions are recommended, including a "personal limited liability system" mortgage, housing price reduction, and equitable rental/purchase rights.
• Alleviating housing stress can enhance family income, improve health, and support the sustainable development of the healthcare sector and social welfare.