The Hidden Crisis: How the Housing Market is Failing Older Americans
The U.S. housing market is often viewed through the lens of first-time homebuyers, particularly millennials and Gen Z, who are frequently highlighted as the most financially burdened age groups. However, another cohort faces significant challenges in today’s housing landscape: older Americans.
As the senior population grows, especially those aged 75 and older, the housing market fails to meet their needs, creating financial and logistical burdens that often go unnoticed.
A Growing Crisis: Cost-Burdened Seniors
Affordability remains one of the most pressing issues for older Americans. Over the past two decades, the number of senior households classified as “severely cost-burdened” — spending more than half their income on housing — has nearly doubled. It surged from 5.2 million in 2000 to 11.7 million today, according to the Urban Institute.
The share of cost-burdened older households rose from 11.5% in 2000 to over 16% in 2016. Many seniors spend a disproportionate share of their income on housing, leaving little for healthcare and daily living expenses. If you’re evaluating your budget, use our Loan Affordability Calculator to assess financial feasibility.
Beyond home prices, hidden costs like utilities, maintenance, property taxes, and homeowners insurance have skyrocketed. These increases are especially significant in areas prone to natural disasters and shifting commercial real estate markets.
Older renters face even greater challenges. Without the financial stability of homeownership, many struggle with rising rents. Those aged 75 and older, with limited income flexibility, are particularly vulnerable.
Aging in Place: A Desirable Yet Challenging Goal
Most seniors want to age in place—remain in their homes and communities as they grow older. A recent Point survey found that 84% of older adults prioritize aging in place. It offers independence, social connection, and avoids costly nursing homes. However, achieving this goal presents difficulties.
Many homes lack accessibility for those with mobility issues or health problems. Modifications like grab bars, ramps, and wider doorways can be expensive. Point’s survey reported that 53% of older homeowners cite maintenance and repair costs as major concerns. Nearly half estimated home modifications would cost over $20,000, and 1 in 10 projected expenses exceeding $100,000.
Fixed incomes make these expenses unaffordable. While aging in place remains cheaper than assisted living, it still incurs costs. Part-time in-home care exceeds $21,000 annually, while a private nursing home room surpasses $116,000 per year.
The Limited Housing Supply
Even when seniors want to move, they face a housing shortage. Affordable and accessible homes are scarce, leaving older adults trapped in residences that no longer suit their needs. Downsizing becomes difficult, pushing many to stay put even when moving would be beneficial.
Adding to the problem, high demand from younger generations has increased housing prices, making it harder for seniors to compete in the market. The lack of affordable, accessible housing options creates a growing crisis.
Potential Solutions
Addressing this issue requires a multifaceted approach. The Urban Institute suggests several policy changes:
- Property tax deferral programs – Allow seniors to stay in their homes without rising tax burdens.
- Medicaid waivers for housing costs – Help cover expenses tied to aging in place.
- Expanded affordable housing access – Increase subsidized housing and Section 8 voucher availability.
- Home modification assistance – Fund programs that help seniors make safety upgrades.
- Insurance subsidies – Provide relief from rising homeowners insurance costs for low- and middle-income seniors.
A Growing Need for Attention
While national housing discussions focus on younger buyers, the challenges facing older Americans must not be ignored. With longer life expectancy and increasing retirement-age populations, the housing market must adapt to their needs.
The financial strain on seniors will only intensify. Policymakers, developers, and communities must address both affordability and accessibility to prevent a worsening crisis.
By recognizing these challenges, we can work toward a housing system that allows older Americans to live safely, comfortably, and independently in their later years. The time to act is now before more seniors are left without viable housing options.
