The U.S. Has a Problem With Seniors Unable to Afford Housing

The sharp rise in the percentage of adults 65 and over living in the U.S. may be a testimony to the wonders of modern medicine and improved standards of living. But it is also a warning of the need for governments and the private sector to move swiftly to address the immense housing and help needs this cohort faces as it ages.

The nation’s senior population “is increasing at historic rates, up 34% from 43 million in 2012 to 58 million in 2022,” according to a new study by the Joint Center for Housing Studies of Harvard University on housing America’s older adults. “This growth is widespread, with urban, suburban, and rural communities across the country reporting increases in older residents.”

Seniors without the resources to pay for the housing and care they will need will face challenges because housing costs consume a significant share of their income. “In 2021, nearly 11.2 million older adults were cost-burdened, meaning they spent more than 30% of household income on housing costs,” the report found. This marked a record high, and an increase of 1.5 million people in just five years.

At the same time, demand for government housing programs “dramatically outstrips supply, with years-long waitlists in some areas,” the report noted.

To add to the challenges, seniors are also more likely to be affected by health, mobility, sensory loss, and other disabilities. They will need homes with accessibility features. But few homes offer the necessary amenities to enable people with disabilities to successfully navigate and use them, the report found. Many older adults will also need help with the activities of daily living – but the cost of such services may be prohibitive.

“Just 13% of adults age 75 and over living alone across 97 U.S. metros could afford assisted living without dipping into assets, and only 14% could afford a daily visit from a home health aide on top of housing costs.”

Even more troubling, “those with very low incomes (at or under 50% of area median income) are most likely to require assistance at home yet have the fewest resources to cover the costs of both housing and care.”

Widening wealth and income inequality compound the problem.

Renters and homeowners with mortgages who have limited home equity to draw on to help cover these costs are likely to be worst affected. Indeed, at the median, older renters have only 2% of the wealth of older homeowners. Even among homeowners, there are disparities by race and ethnicity in the amount of home equity available. “Older Black homeowners have the lowest median equity at $123,000, compared to $251,000 for older white homeowners, $200,000 for older Hispanic owners, and $270,000 for older owners who are Asian, multiracial, or another race,” the report noted.

“Leaders from the public, private, and nonprofit sectors have abundant opportunities to address the mismatch between a rapidly aging population and an insufficient supply of affordable, accessible housing connected to services and supports,” the report emphasized.

Steps might include zoning reforms and financing incentives to encourage new housing options, including those that might enable seniors to remain in updated homes in their communities, especially in rural and low-density areas.

Government support for additional rental assistance, accessibility modifications and services would also help, along with improved coordination of health and housing programs and more efficient service delivery in neighborhoods with many seniors, as well as unbundling services in assisted living.

“The need for suitable, affordable housing and housing-based care is only growing, as is the urgency to act,” the report warned.