The Harvard Joint Center for Housing
Studies recently published Housing
America’s Older Adults 2018. A highlight of the report is that over half of
U.S. households are now headed by someone age 50 or older. This indicates that
the living arrangements, financial resources, health, and functional abilities
of those households will present serious challenges in the years to come.
Baby boomers will soon begin turning 80 and
will increasingly need more accessible and supportive housing than is either
currently available or in the pipeline. In addition, many households in their
50s and early 60s are not financially prepared for retirement. A major reason
for this is that fewer of these households are homeowners or have built the
wealth that prior generations had by the same age.
Other notable trends in the study:
- Many
older Americans are burdened by housing costs.
Nearly a third of households age 65+ (9.7 million) pay at least 30% of their
income for housing, and more than half of these pay over 50%.
- There
is a large wealth gap between older homeowners and renters.
The median net worth of homeowners age 50-64 was $292,000 in 2016 - almost 60 times that of renters of the same age.
The importance of homeownership in wealth building cannot be overstated. It is
the single most valuable asset for most seniors and often enables a comfortable
retirement.
- While
median incomes in the last five rose for older adults, gains were not evenly
distributed. From 2011 to 2016, median incomes rose
9.6% for those 65 to 79 and 5.2% for those 80 and older, but people age 50 to
64 saw an increase of only 2.6%.
- There
is an historically high gap in homeownership rates between older whites and
blacks. 81% of white households age 50+ own their
homes compared to 57% of older black households. This 24% gap is the largest
since record-keeping began in 1976.
- Growing
numbers of older adults live in low-density areas.
Between 2000 and 2016, the share of older adults living in low-density census
tracts in 95 of the 100 largest U.S. metropolitan areas rose from 24% to 32%,
an increase of almost six million adults. Providing services and transportation
alternatives is more difficult in locations with more dispersed housing.
- There
are not enough accessible units to serve the growing number of those with
physical challenges. In 2016, 17% of households age 50+
included someone who had difficulty climbing stairs or walking (including 43%
of those age 80+). Yet, only 3.5% of homes had the three key accessibility
features: (1) single-floor living; (2) no-step entries; and (3) extra wide
halls and doors.
- Many
of the most vulnerable live alone. The share of households age 80+ that are
single - person is now 57%. However, among renters of the same age, it is 77%.
Single person households in need of support or care must rely on non-resident
or paid caregivers, yet also have lower incomes than larger households.
What this study makes clear is that there
is currently a lack of adequate housing for seniors - especially affordable
housing, and, in years to come, the need will grow. Unfortunately, the
combination of greater numbers of lower-income older households and limited
federal subsidies will only increase the gap between need and supply. This will
result in more older adults being forced to cut back on necessities in order to
pay for housing.
At this point, there is no indication that
there is the political will - or even recognition of the problem - to begin
developing a long-term solution. While only a coordinated response from the
nation’s public, private, and non-profit entities will begin to address this
issue, there is clearly almost no action at the public policy level. Until our
elected officials begin to recognize and deal with this growing crisis, the
private and non-profit sectors will have to find innovative ways to at least
begin to address this growing problem.
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