This paper explains the logic of older adults’ living arrangements by developing continuity theory. Although older adults who are constrained by household endowments interrupte their living arrangements, the endowment effect will be affected by older adults’ social network of family. Based on the three periods of CLASS data from 2014 to 2018, this paper uses the latent class model and Binary Logistic fixed effect model to evaluate influence and mechanism of older adults’ household endowments on their living arrangements. The result shows that the elderly rationally choose living arrangements according to their household endowments, and the weakening of their household endowments will significantly promote them to live with children. And this conclusion remains robust after changing household endowment threshold. In addition, there is little heterogeneity between urban and rural areas. The period effect shows that the trend of empty-nest in cities is obvious, while there is a certain rebound in rural areas. The result confirms older adults’ social network of family plays heterogeneous effect and mediating effect between their household endowments and living arrangements. On the one hand, under the influence of heterogeneity, older adults whose social network of family was close and dependent have a higher probability of living with their children after their household endowments weakened. On the other hand, under the mediating effect, older adults whose social network of family was independent and instrumental, after the weakening of their household endowments, will change the living arrangements by adjusting their type of social network of family. Based on what has been discussed above, local governments should face up to the empty-nest trend of living arrangements and focus on the influence of some soft indicators such as concept on living arrangements.
