The housing market makes headlines every day, whether it's the latest speculation on the Fed's rate cuts or the most recent spin on paying real estate agents' fees, there are plenty of opinions going around if you care to listen. It's not surprising really, given the size of the market. In 2023, the housing market was estimated to be approximately $3.4 Trillion-or approximately 15 percent to 18 percent of the total gross domestic product (GDP) of the United States. The take away here? We move—a lot.
So, I find it particularly surprising that so few are talking about one of the biggest issues I see facing the housing market over the next decade or two -- our aging population. As of 2023, there are more than 58 million people living in the United States who are age 65 or older. With another 10,000 to 12,000 people turning 65 EVERY DAY in the US that number is projected to grow to more than 82 million people by 2040, according to the US Census Bureau.
What does all of this have to do with housing? Millions of our senior and soon-to-be senior citizens are living in homes that are not equipped to handle the needs of aging in place. Living in a third-story walk up in New York? Challenging enough for a 35-year-old. Impossible for most 75 year-olds. How about a two story single-family home in the suburbs with all the bedrooms and bathrooms upstairs? Just as impossible for anyone with knee or hip arthritis, other mobility issues or more serious health concerns.
Though I have a few more years before I turn 65, I think about this often. When my own mom reached the point where she could no longer live alone, my family quickly realized that an assisted living facility was her only option, because neither l, nor my siblings, had single-story homes or even homes with main-floor bedrooms and bathrooms. This realization informed the decision my husband and I made a few years ago to build a single-story home with no interior steps, making it easier for us to live in our home much longer.
Like my husband and I, some people may decide to move to a single-story home, but for others, that may not be possible. Renovating an existing home to accommodate the needs of seniors is expensive and may be physically Impossible, depending on the size and structure of the home. Assisted living however, is neither desirable nor affordable for many -- and even if it were, there are limited facilities available. There are certainly not enough senior housing facilities to accommodate the tens of millions who may need it in the coming decades.
Many seniors are sitting on large amounts of home equity, making selling a viable option, but only if they can find a suitable replacement. Homes for purchase in senior housing communities do not exist in every market and often come with a high price tag along with high Homeowners Association (HOA) dues and significant restrictions. Another option would be to add a small, additional dwelling unit (think casita or ohana) on a property so mom or dad can live with the family, yet still have separate space. Unfortunately, this option is frequently prohibited -- either by local building/zoning codes or by the physical yard space available for such a project.
Considering the 82 million people in this country who will be 65 or older within 15 years, there is a need for quality spaces designed with our aging population in mind. How to make that happen is another question altogether.
There are no easy or perfect solutions, but I'd love to hear from you. if you have ideas, are thinking of moving when you retire or would just like to discuss, reach out.
As a certified Seniors Real Estate Specialist, I'll help you find the perfect home for the next chapter of your life so you can "Love Where You Retire."
By Barbara VanDyke, Broker Associate, @properties Christie's International Real Estate, Seniors Real Estate Specialist, GRI, CLHMS, CNE @2024, Written entirely by the author, not by Al. Author reserves all rights. No part of this article may be used without written permission and appropriate citation.
