Housing prices, homeownership, and cognitive functioning in later life: evidence from China

This study examines how housing prices relate to cognitive functioning among older Chinese adults. Specifically, it (1) distinguishes relationships by homeownership status, (2) compares associations across different cognitive domains, and (3) evaluates heterogeneity by sociodemographic status to reveal how housing market dynamics may shape cognitive inequality in later life.

Drawing on longitudinal data from the China Health and Retirement Longitudinal Study (2011-2018) linked to city-level housing price data, we used individual and time fixed-effects models to assess relationships. We performed mediation analyses to explore underlying mechanisms and conducted heterogeneous analyses to identify differential associations across sociodemographic groups.

We find that positive housing price growth significantly enhances cognitive functioning among older homeowners, particularly improving mental intactness, whereas non-homeowners show no significant cognitive benefit. The positive relationship between housing price growth and cognitive functioning is notably stronger among socioeconomically disadvantaged groups. Exploratory mediation analyses suggest that the positive association between city-level housing price growth and cognition among homeowners may be partly explained by improved financial security, reduced depressive symptoms, and greater engagement in leisure activities.

China's near-universal homeownership, rapid aging, and volatile housing markets offer early insight into how asset inequality shapes cognitive functioning. This study shows that housing wealth functions as a key social determinant of cognitive health in later life. Policies promoting affordable housing, stronger safety nets, and community-based care can help reduce cognitive disparities and support more equitable aging.