Determinants of elderly housing prices, willingness to pay, and influencing factors on the decision to stay in the Bangkok Metropolitan Region

This article is aimed to (1) analyze factors affecting elderly housing prices determination in the Bangkok Metropolitan Region (BMR) using the hedonic pricing model; (2) estimate willingness to pay for elderly housing in BMR; and (3) identify the factors that influence decision-making in demand for elderly housing in BMR using the Theory of planned behavior and Structural equation model. The main research findings are as follows: Firstly, this research found that from the entrepreneurs' point of view, location is not the main factor that affects the price of elderly housing, but this rather affects nursing services. This nursing service cost relies on the dependency level and health status of older people resulting in the incorporation of the cost into elderly housing prices. Moreover, this study also found that the production cost might not meet customer satisfaction, as the supplied services should cover all possible aspects regardless of individual customer needs. Secondly, from the consumer's view, this study found that the respondents choose to live in elderly housing according to personal characteristics and privacy, and the options are based on suitable nursing services and room types. In addition, older people are willing to pay for fundamental aspects but not add-on options when compared to other age groups, regardless of the types of housing operations. Controversially, health consciousness and privacy are the keys to their willingness to pay for future services. Thirdly, significant factors influencing decision-making in choosing elderly housing in BMR was determined by perceived behavioral control, suggesting that respondent need to use it depending on their perception of health status, savings, and decision-making ability. Moreover, the service price levels are less likely to affect elderly decisions compared to other age groups as they are aware of their needs for services. Finally, from a policy perspective, this study suggests that the government should consider supporting entrepreneurs through tax reductions/exemptions or policies that encourage the private sector’s involvement in supporting and developing high-quality elderly housing facilities. Furthermore, there is a need for better preparation and support for end-of-life expenses. This would provide more options for those who desire to use such services and enable them to access convenient and suitable possibilities.