US Unprepared to Meet Housing and Care Needs of Aging Boomers: Study

‘Many older adults will have to forgo needed care or rely on family and friends for assistance,’ according to an expert.
US Unprepared to Meet Housing and Care Needs of Aging Boomers: Study
A pensioner holds his walking stick in this file photo. Christopher Furlong/Getty Images
Caden Pearson
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The U.S. government is not prepared to meet the housing and care needs of its aging boomer population, according to a Harvard report.

The United States is facing an impending crisis in providing housing and care for its booming older adult population, with a dire need for increased taxpayer assistance, according to the latest findings from the Housing America’s Older Adults 2023 report.

Jennifer Molinsky, project director of the Housing an Aging Society Program at the Harvard Joint Center for Housing Studies, contends that without adequate taxpayer-funded support, “many older adults will have to forgo needed care or rely on family and friends for assistance,” potentially leading to homelessness for some.

Ms. Molinsky contends that government intervention is needed to better handle the surge of older Americans, particularly baby boomers born after World War II. She points out that more assistance is critical to preventing a crisis where individuals end up homeless due to insufficient support.

The report contends that urgent action and “creative alternatives” are imperative to address the multifaceted challenges faced by the rapidly aging population in the United States.

Older adults face the dual challenge of securing affordable housing and accessing essential services, especially as their incomes often remain fixed or decline, according to the report. Adding to the challenge, social housing demand exceeds supply for very low-income earners, while many who earn slightly more become ineligible.

The U.S. population aged 65 and over has surged by 34 percent in the past decade, from 43 million in 2012 to 58 million in 2022, with the most significant growth anticipated among those over 80 in the coming decade. This is when people are more likely to need accessible housing, services, and support at home, Ms. Molinsky said in a news release.

In 2021, the report highlights that federal housing assistance programs like Section 8 or Section 202, which offer housing with supportive services for older individuals, were only sufficient for a little over a third of the 5.9 million eligible renters aged 62 and over.

Over the next decade, the United States is expected to witness a 45 percent increase in the population over the age of 75, growing from 17 million to nearly 25 million. However, many of these individuals are anticipated to face financial struggles.

The report underscores that in 2021, nearly 11.2 million older adults were “cost burdened,” spending over 30 percent of their income on housing.

Sunbelt areas popular for retirement, such as Las Vegas, San Diego, Raleigh, North Carolina, Miami, and Daytona Beach, Florida, exhibited some of the highest cost-burden rates for renters aged 65 and older.

The challenges extend to older homeowners, with rising mortgage debt among this demographic. The median mortgage debt for homeowners aged 65 to 79 increased over 400 percent, from $21,000 in 1989 to $110,000 in 2022, highlighting the increasing need for accessing cash for basic needs and care.

Obtaining additional services as they age remains a significant challenge for many older adults, with long-term care costs averaging over $100 a day. The report highlights that the majority of older adults requiring these services, especially those with low incomes, lack the necessary resources to cover the costs. When combined with housing expenses, only 14 percent of single individuals aged 75 and over can afford a daily visit from a paid caregiver, and just 13 percent can afford assisted living.

The report notes that households of older people of color, particularly black and Latino households, are more likely to be cost-burdened than older white households.

Additionally, older individuals living alone face a higher likelihood of being cost-burdened compared to married or partnered couples, with 47 percent versus 21 percent, respectively.

The report advocates for creative solutions to address the housing and care needs of those with fixed or dwindling incomes and inadequate savings. Suggestions include house or apartment sharing to reduce costs and considering accessory dwelling units (ADUs) like casitas, granny flats, and in-law units. Cohousing communities, where individual homes, including tiny homes, are arranged around a communal space, offer an alternative model.