Study Highlights Housing Needs as U.S. Population Ages

The Joint Center for Housing Studies of Harvard University released Housing America’s Older Adults: 2018, which highlights the need to provide safe, affordable, and accessible housing to the nation’s aging population. More than half of the nation’s householders are at least 50 years of age, and more than one-quarter are at least 65 years of age.

Between 2011 and 2016, the number of households headed by adults between the ages of 65 and 74 increased by 26% to more than 17 million. With the aging of these “baby boomers,” the number of householders at least 80 years old will double by 2037.

Nearly one-third of households at least 65 years of age are housing cost-burdened, spending more than 30% of their incomes on housing costs. More than 16% are severely housing cost-burdened, spending more than half of their incomes on housing. Older renters are much more likely than older homeowners to be cost-burdened (54% vs. 26%) or severely cost-burdened (30% vs. 12%). A significant challenge is rising rents. Between 2006 and 2016, Social Security payments increased by 6%, while the median rent for households aged 65 years or older increased at twice that rate.

Significant wealth disparities by race and housing tenure exist among older adults. The median net worth of households aged 65 and over is $384,100 for white homeowners, $145,300 for minority homeowners, $11,070 for white renters, and $2,000 for minority renters. One troubling trend identified in the report is the growing share of older adults who have a mortgage, which rose from about 20% in 1989 to 41% in 2016.

Accessible housing for people with disabilities is increasingly important as the population ages, as mobility and other functional impairments increase with age. Eleven percent of adults between 50 and 64 years of age and 43% of adults aged 80 and over have ambulatory problems like walking or climbing stairs. In 2011, only 3.5% of homes included accessibility features like single-floor living, no-step entries, and extra-wide hallways and doorways for wheelchairs. Renters and homeowners with little wealth may need government assistance to make their homes more accessible. Federally assisted housing is more likely than private-market housing to be accessible, but more subsidies are needed to meet the growing demand for affordable and accessible housing.

The report notes that state and local governments and the non-profit and private sectors have roles in developing more affordable and accessible housing for older adults. Jurisdictions can use federal funds like Community Development Block Grants to assist low income adults with home modifications, while some municipalities and states offer tax credits and low-interest loans.

Housing America’s Older Adults 2018 is available at: https://bit.ly/2RSjeHm