How Seniors Can Successfully Navigate Rising Housing Costs
The shortage of affordable homes and rising costs affect more than just those looking for a starter home. They’re affecting the other end of the spectrum even more: our aging population.
Americans are living longer, so more seniors are in our communities than ever. And the segment is growing, as this piece by urban.org details.
The article further states that more households than ever are headed by those 50 or older, with many on fixed incomes. They face a situation where the cost of utilities, home insurance, property taxes, maintenance, and long-term care are rising.
“Older seniors, those 75 and older, are more likely to be cost-burdened than younger seniors. Other research finds that rising insurance premiums have also made senior living communities more expensive.”
It’s a heavy burden for seniors with less flexibility than other demographic groups. Consider that seniors often want to stay in their current homes, and we have a senior housing crisis.
Can government help?
The urban.org articles argue that policymakers can ease the burden with several initiatives. Tax deferrals, Medicaid waivers, insurance subsidies, and housing vouchers are just some of the solutions the writers suggest.
While those would help our aging population, they don’t easily address the fundamental issues rooted in the housing crunch. There are fewer homes to buy than in the past. And, even if you find one that accommodates senior living, inflation has driven mortgage interest rates higher.
According to Statista, home sales in the US peaked at almost seven million in 2021. Then came the pandemic, and vacancies dropped to 4.8 million on average.
And they are more expensive. Today, the median home price in the US is nearly $420,000, a 17% increase in just four years.
Then, consider the accommodations seniors need to make their homes livable. The United States Census estimates that only 10 percent of housing units in the US are suitable for seniors.
How to stay in your home – and live fully
Here’s the conundrum facing seniors: Few homes are available, and costs are rising. Only a fraction of homes meet the standards for senior living. Assisted living is becoming more expensive, and long-term healthcare insurance costs will likely continue to increase.
As noted by Forbes, “LTC insurance may increase over the years, and rate hikes can be significant.”
No wonder seniors want to stay in their current homes. There simply aren’t better options.
Let’s return to the urban.org article. It argues for government-mandated improvements to ease the situation. However, private initiatives can also help, especially with long-term care. They can work with governments so seniors can purchase state-mandated LTC and receive tax breaks.
How to pay for it?
Our signature solution, CHEIFS, allows homeowners to access their dormant home equity and convert it into tax-free cash to buy insurance and make home improvements that meet senior living needs.
This way, seniors can stay in their homes, update them, and purchase long-term care insurance while maintaining the benefits of home ownership.
Many Americans hope the housing crisis subsides. However, homeowners, especially seniors, can act now to lessen the crisis’s impacts and live fully.
