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Individual preferences for 'ageing in place' (AIP) in old age are not well understood. One way to test the strength of AIP preference is to investigate the effect of health shocks on residential mobility to smaller size or value dwellings, which we refer to as 'housing downsizing'. This paper exploits more than a decade worth of longitudinal data to study older people's housing decisions across a wide range of European countries. We estimate the effect of health shocks on different proxies for physical and financial housing downsizing (residential mobility, differences in home value, home value to wealth ratio), to examine the persistence of AIP preferences. Our findings suggest that consistently with the AIP hypothesis, after every decade of life, the likelihood of downsizing decreases by two percentage points (pp). However, the experience of a health shock partially reverts such culturally embedded preference for AIP by a non-negligible magnitude. We estimate a 9pp increase in the probability of residential mobility after the onset of a degenerative illness), and an average 0.6 fewer rooms after the onset of a degenerative illness. Such estimates are larger in Northern and Central European countries. [ABSTRACT FROM AUTHOR]

Covid-19 outbreak has mostly affected people in the second half of their lives, at risk of isolation and loneliness; in fact, the impact of the pandemic was even more severe for the well-being of the elderly. Such a recent event has to be framed within the challenge of the demographic increase of people aged 65 years or older, which is particularly relevant in the European context. This paper explores which gaps have to be filled up in order to make cities a suitable place for the elderly to live in, particularly after any emergence of dysfunction and fragility in health, employment, transportation and welfare systems due to the pandemic. We assess the relative contribution of each regressor to the explained variance, that may advise policy makers about which urban features are perceived to be the most relevant for the elderly, even before the pandemic, and must be implemented. Our results have several policy implications. The assessment should provide a contribution to European decision-making processes headed to improve the perception of age-friendliness in urban environments, implementing a paradigm for reference, given the great heterogeneity of features characterizing European cities. • It is important to understand suitability of urban environments for the elderly. • The analysis covers 83 cities in Europe and the perceptions of their citizens. • The age-friendly city environment was associated with an elder-friendly city. • The R-squared decomposition identifies the most relevant features of cities. • Our results contribute to improve policies for cities after Covid-19 pandemic. [ABSTRACT FROM AUTHOR]