In a report on housing affordability challenges facing middle income older adults over the age of 50, AARP’s Public Policy Institute finds that older adults face falling incomes and increased health care costs. As a result, housing cost burdens are on the rise for those studied—older adult households earning between $23,128 and $86,195 in 2009—undermining housing security. Between 2007 and 2010, the median household income of older homeowners fell by 7.7%. During the same time period, older renters experienced an even greater loss in income, with median incomes falling by 10.3%. While median incomes have fallen, other expenses, such as health care costs, continue to rise. Similarly, average monthly housing costs for older renters rose from $678 in 2000 to $761 in 2009. Rising rental costs, falling incomes and the increasing cost of other expenses are threatening the housing security of older Americans. The report finds that the incidence of cost burden among older middle income households increased from 20% in 2000 to 29% in 2009, while the percentage of severely cost burdened households increased almost twofold from 5% to 9% over the same time period. Older middle income renters are even more likely to face a housing cost burden, with 35% facing such a burden in 2009. Older homeowners are also affected by housing instability. The percentage of older homeowners with a mortgage rose from 38% in 2000 to 42% in 2009. With a greater number of older Americans holding a mortgage, housing-related costs tied to debt are rising for this age group. In addition, the report notes rising foreclosure rates among older homeowners. From 2007 to 2011, the foreclosure rate grew tenfold, from 0.3% to 2.9%, for homeowners over age 50. Older African-American borrowers faced an even higher foreclosure rate of 3.5% in 2011. The authors expect older adults to face increasing housing instability in future years, with fewer affordable housing options. The authors call on state and local governments to support public policies to allow older adults to age in place by increasing the supply of affordable housing with access to transit and services most utilized by older Americans.Click here to read Loss of Housing Affordability Threatens Financial Stability for Older Middle-Class Adults by Rodney Harrell, PhD and Shannon G. Guzman at the AARP Public Policy Institute.