In the recently released study, “Housing America’s Older Adults” by the Joint Center for Housing Studies of Harvard University, the unique need for appropriate, safe housing for seniors and the current lack of such available housing is discussed. Currently, a third of people over the age of 50 pay more than 30% of their income for housing.1 In addition to cost, other housing concerns older Americans must consider, include: accessibility and safety, preferences to live independently, with family or in a retirement community.
In 2011, 60% of those aged 80 or older had lived in the same home for at least 20 years.2 As housing needs begin to shift, some causes for moving as Americans age include: right-sizing to a smaller and more manageable home, moving in with family, or moving to a retirement community or assisted living. Health concerns such as limited mobility may require a home without stairs or larger halls and doorways to accommodate a wheelchair. Others will choose to have full-time in home care, rather than move to an assisted living facility, and will need additional living space for their nurse or aide.
The amount of housing space we need also changes as we age. Children may move out and aging parents may move in. For those in the “Sandwich Generation” who open their homes to both their adult children and their aging parents, housing needs may include space for three or more generations. For others, right-sizing into a smaller, more energy efficient home may be both cost effective and convenient as a smaller home is easier to maintain and is often more accessible.
The greatest change in household type that occurs after the age of 50 is the increase of people living alone.3 60% of people aged 80 or older live alone. Because women typically live longer than men, women make up about 75% of this group. Projections made from the Joint Center for Housing predict that the number of people over the age of 75 who live alone will nearly double between 2015 and 2035, from 6.9 million to over 13 million. The hardships of physically or financially maintaining the home may be too much for many aging seniors, especially those who are single.
The American population is increasingly diverse and housing needs for aging Americans is changing.4 Some prefer to live in multigenerational housing or homes that include at least three generations. Since the late 1980s, the rate of multigenerational households has doubled.
If you are struggling to live comfortably in your current home, but do not want to move out, there may be a solution. A reverse mortgage loan allows senior homeowners to tap into the equity in their homes to receive monthly payments, a lump sum payment or a line of credit. This money can be used however the homeowner chooses, including to make updates and renovations to their home. For many, a kitchen and bathroom renovation that creates usable spaces for the homeowner is a better option than purchasing a new home.
Others choose to use their funds from their reverse mortgage loan to hire in-home care rather than move to a retirement facility. Often, these seniors have difficulties walking or getting around, but are still independent in the other areas of their life. Or, if home maintenance and repairs are a financial or physical concern, a reverse mortgage loan can fund hiring a professional to take care of home maintenance.
Reverse mortgage loans are not right for everyone. Borrowers must be at least 62 years old, have significant equity in their home and meet financial eligibility criteria as established by HUD. Borrowers must continue to pay taxes and insurance and must maintain the home throughout the life of the loan. However, if you plan to live in your home for years to come and have paid down a large portion of your mortgage, a reverse mortgage loan may be the best choice to keep you living independently for as long as possible. For more information about reverse mortgage loans, call 800-976-6211.