MOVING BEHAVIOR, USED HOUSE MARKET AND PLICY EFFECT OF EXTENDING THE LIFE TIME EXPECTANCY OF RESIDENTIAL HOUSING

Abstract

 The recently-initiated policy of extending the life time expectancy for residential housing is expected to be associated with multiple objectives such as reduction in environmental load and an increase in the value of housing asset. This study formulates a matching model of housing market where households, being motivated by their change in needs for housing service, search new houses, in order to investigate the policy effect on the market equilibrium. Since the tradability of the secondhand houses is restrictive, the policy may bring about a decrease of the asset value and an increase in mismatching of households' needs. The study further examines the effect of complementary policy that enhances the trading capacity of the secondhand market.