October 11, 2019 | by Anna Orendain
Categories: Affordable Housing, Homeownership, Rental Housing
PropertyShark recently released the results of their yearly generational housing survey that indexes housing trends and preferences across different age groups. This year, the survey took a look at how the housing market is adjusting to a large, changing age demographic -- Baby Boomers.
While housing trends for Millennial and Gen Z generations are garnering a lot of attention, it's Baby Boomers (born between 1946 and 1964) that will have just as significant of an impact on the real estate industry as they enter retirement.
PropertyShark data projects that by 2030, 1 in 5 Americans will be over the age of 65. By 2035, older adults will outnumber children for the first time in United States history. And by 2060, it's expected there will only be 2.5 working-age adults for every 1 retirement-age individual.
With the number of retirement-age adults dramatically increasing, questions linger about if they're financially ready for retirement and their housing situation. Regarding the former question, PropertyShark’s survey found that 58% have less than $100,000 saved for retirement. And regarding housing, data shows that one in three Americans over 45 years of age has struggled to keep up with housing costs in the past year regardless of income or retirement status.
For the majority of seniors (56%), their preferred long-term housing option is to age-in-place as opposed to a senior living facility or living with family. Aging-in-place may pose itself as a relatively affordable retirement option initially, but as seniors get older and have a greater need for senior-specialized designs in their homes, there may be out-of-pocket costs later down the line.
The PropertyShark survey highlights the growing need for affordable housing options when it comes to housing our nation’s growing senior population. TSAHC has three programs targeted towards addressing their needs.
Senior housing is one of the targeted needs in our Multifamily Tax-Exempt Housing Bonds program. In fact, TSAHC recently authorized a bond inducement that will result in the preservation of 13 rural rental communities for seniors.
We're also committed to assisting very low-income seniors with our Texas Foundations Fund program. Through that, we award grants to nonprofits who provide critical home repairs and accessibility modifications to seniors so they may age-in-place in a safe home.
And finally, for seniors looking to downsize by purchasing a smaller home, TSAHC offers down payment assistance to help them keep pace with rising home prices. Click here to view our previous post that explains how down payment assistance gives seniors more housing options in retirement.
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