Costs and supply will continue to impact seniors in the coming years
According to research, seniors tend to struggle with three key housing issues: affordability, physical accessibility, and access to medical and other necessary services inside and outside of the home.
In addition, new senior housing availability will likely become a greater issue in the years to come.
Last year, NPR aired a report warning that seniors are struggling with the cost of housing, especially those who rent rather than own their own homes. Even those living in their own homes may find it difficult to age in place if they can’t afford home modifications or home health aides should the need arise. The dual burden of housing costs and caregiving needs will be too much.
Studies show that the trend will get worse as the baby boomer generation turns 80. “The sheer number of people in their 80s is going to be huge,” said NPR’s Jennifer Ludden.
NPR’s program references a Harvard’s Joint Center for Housing Studies report: To keep more seniors housed in coming years, it needs to be easier for people to age in place if they prefer. Among other things, the report suggests government programs to finance safety upgrades like ramps for those who can’t afford them. Harvard researcher Molinsky also states that there should also be more options for seniors who want to move, and — like other affordable housing advocates — calls for zoning reforms to allow more apartment buildings in places long dominated by single family homes. Other findings from the report show that homeownership rates among those 50-64 have fallen, suggesting that fewer seniors will have home equity to draw on when needs become greater.
Without more help, the financial squeeze seniors face will force tough choices for many, especially once a spouse passes away and household income plummets. “It really is driving people’s choices about where they want to live,” says Molinsky. “It’s driving their prioritization of other things in their budget, like out-of-pocket health care and food.”
A current report by Senior Housing News echos concerns about new senior housing availability. Issues such as difficulties starting new projects, investment shortfalls, increasing construction timelines, increasing costs of building materials, and a shortage of labor can halt growth. According to NIC MAP Vision data, the current senior living development pace shows a 550,000-unit shortfall by 2030. “We are critically behind in taking care of our aging population,” said Arick Morton of NIC MAP Vision. “We simply don’t have enough senior housing inventory in the pipeline, so we must act now to develop senior housing to help meet this demand.”
Senior living operators are still grappling with staffing challenges and shifting demand fueled during the COVID-19 pandemic. Still, Onelife Senior Living CEO Dan Williams is optimistic about the market. Senior living housing continues to evolve into “super nice” communities with enriching amenities for residents, along with expanding memory care. “Today’s seniors have high expectations when it comes to service and hospitality,” said Greg Colon of Erickson Senior Living. He stresses the need to make a culture within each community where people want to live and also to work in.
