There is considerable emphasis placed on finding solutions to rising heath care costs for those 65 and older, but not enough is placed regarding housing and providing adequate support services for this same group, a Center for Housing Policy report states.
As seniors get older, they pay a higher percentage of their income for housing, not just in rent or mortgage payments, but also property taxes, maintenance, and utility costs which all tend to rise over time for both groups. At the same time, income tends to decrease.
"Accumulated savings and home equity can help, but levels of net worth vary dramatically among older adults, and are particularly low among racial and ethnic minorities," the report declares.
There are two policy paths available; one that allows seniors to age in their current homes, while the other calls for expanding housing options.
Regarding that second path, CHP said "By adopting more flexible zoning policies and aggressively enforcing the requirements of the Fair Housing Act and Americans with Disabilities Act, communities can help foster a diverse range of housing types."
But subsidies are needed to ensure these options are available for low and moderate-income seniors, "and at present there are far too few of these to go around."
As for aging in place, reverse mortgages have been held up by many of the products supporters as a way to encourage this option. But what worries CHP about reverse mortgages is that according to a recent study of older adults seeking counseling for these loans, more than two-thirds were considering taking out one as a way to reduce household debt.
The report notes the obvious, that the decline in home values has reduced the amount of money available to seniors in many cases, if they are able to qualify for the reverse mortgage in the first place.
"This raises the concern that some homeowners could deplete their equity too quickly, leading to the loss of their home later in life. Further study is needed to better understand the impacts of this trend." CHP said.
