By Mike Bodeen · 2 December 2024
As We Boomers Age, There’s Much to Consider
We’ve written much About first time homebuyers and the great struggles for them to be able to break into the housing scene. This week, I ran across a couple of interesting articles about the problems that even boomers are and will be running into in the years ahead as we age.
First, many boomer homeowners with mortgages are now pondering the very real possibility that they will need to age in place. A blessing and a curse are the sub 4% mortgages that a majority of homeowners have.
Indeed, according to a recent National Association of Realtors article, 52% of Americans with mortgages have a mortgage rate of less than 4%. 75% have a mortgage under 5%. Many homeowners say they’re tied to their properties by “golden handcuffs” and feel like they’re stuck there. Read Article here…
The other dilemma facing many homeowners right now is that even though they have a sweet low mortgage rate, housing casualty insurance is soaring, while many cities are also seeing taxes rise. Fortunately for Phoenix, many communities have actually seen a reduction in taxes.
Along those lines, Smart Asset states that Phoenix, AZ is a top ten relocation target for boomers buying houses.
Another article from MSN.com, authored by Jennifer Molinsky references an extensive study completed by Harvard University’s Housing an Aging Society. This study states that empty nest baby boomers owned twice as many homes with three or more bedrooms as millennials with kids.
While some boomers simply don’t want to downsize or move, others can’t afford it or don’t have any feasible options. 80% of homeowner baby boomers were planning to age in their current residence.
The article states that Molinsky authored the report last year finding the US didn’t have anywhere near enough housing and care services for boomers as they age. “Is it aging in place or is it stuck in place,” asks Molinsky. “There’s a lot of people in the middle.”
The article discusses a growing disparity of affordable housing, combined with the need for boomers for health care. Accessibility features, such as single floor living will be in greater demand as we continue to age.
Homelessness is also rising among older individuals. Though government programs provide crucial housing assistance to millions of older adults, housing demand dramatically outstrips supply. Looking forward, says the article, the urgent need for affordable housing and care will grow.
So young people can’t afford to buy into the market and older homeowners can afford to sell. I’d say that something needs to give.