Amid rising costs and housing shortages, many older homeowners face the alarming reality of potentially losing their homes.
An increasing number of older individuals, particularly homeowners, are experiencing severe housing insecurity. This stems from a combination of factors including housing shortages, inflation, and an aging population. Despite homeownership being a key element of the American dream, it no longer provides the same level of retirement security for many older adults.
The rise in home repair costs, insurance premiums, and property taxes contributes significantly to their financial strain. Many baby boomers find themselves unable to maintain their homes or afford necessary repairs, pushing them closer to homelessness. The federal government’s data from January 2024 indicates that homelessness has risen to record levels, with older adults forming a larger portion of this demographic. Specifically, the percentage of homeless individuals aged 50 or older has increased from about 10% to 50% over the past thirty years.
As Marcy Thompson, vice president of programs and policy at the National Alliance to End Homelessness, stated, ‘The cost of housing and the cost of everything, quite frankly, is getting more and more expensive. And this is particularly true for older adults who are on fixed incomes.’
Valerie Miller, a 67-year-old mobile homeowner in San Bernardino, California, exemplifies this crisis. Despite owning her home for nearly 35 years, she is struggling to cover rent for the land it occupies and lacks funds for essential repairs. Planning to delay her Social Security benefits until age 70, Miller is already depleting her modest retirement savings while fearing she may never retire from her current job at a truck-permitting company. Selling her home seems necessary but finding affordable alternatives appears equally challenging. She shared her anxiety, ‘Sometimes I lie awake at night and I’m so worried. I don’t want to use up all my savings, and then what do I do? Live off credit cards or go with the homeless people?’
The surge in homelessness among older Americans results from demographic changes and escalating housing costs. A growing number of older homeowners and renters now allocate over 30% of their income to housing expenses. Allison Nickerson, executive director of LiveOn NY, emphasized the misconception that all baby boomers are financially secure, noting that a fifth of Americans aged 50 and above lack retirement savings.
Barbara Willing, another case, illustrates the harsh reality. At 69, this artist from Victor, Montana, faces inconsistent income due to an autoimmune disease and precarious employment history with retailers like Walmart and Lowe’s. Despite purchasing her home over two decades ago, she is still tied to mortgage payments and unable to afford necessary repairs due to chronic financial instability. Willing described her dilemma, ‘I have to keep the place I’m in, even though it’s inadequate in a lot of ways, because to move would cost me so much more.’ With her Social Security checks, assistance from a local food bank, SNAP, and disability benefits as her primary support, she continues to battle against homelessness, ‘I’ve gotten over the anguish, the humiliation of having to go to the food bank. I actually like going there now, and I tell them how great they’re doing.’
The increasing financial burdens and limited housing options place older homeowners at significant risk of homelessness. Without intervention and better affordability measures, this trend may continue worsening, impacting the quality of life for many older adults.
Source: Businessinsider
