1 in 2 Americans age 56 and older never plan to sell the homes they live in — is aging in place smart?
Depending on your perspective, it’s a heartwarming testimony to resilience after 60, a potential money pit, or yet another reason to hate baby boomers: More than half of them refuse to get out of their homes, according to a new survey.
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In talking to 1,100 boomer homeowners, Clever Real Estate found that 54% never plan to sell. The reasons for those who choose “aging in place” are financial, emotional and social. You get to stay in the domicile you know and love, maintain community relationships and enjoy the perks of a paid-off home.
Yet the “aging in place” phenomenon implies much more for boomers than snuggling by the fireplace over chardonnay and Joni Mitchell records. In fact, it can get costly and even dangerous.
"Almost all boomer homeowners (90%) have concerns about homeownership as they age, primarily based on growing expenses," said the Clever study. "The cost of maintenance and upkeep tops the list (59%), while being able to physically take care of these tasks isn’t far behind (55%). About half (49%) worry about property tax increases, while 42% are concerned about rising utility costs." About a quarter worry about accessibility and mobility issues and 20% are concerned about living alone.
Aging in place up close
Born between 1946 and 1964, baby boomers were estimated to number 73 million in 2019. The demographic now represents a good chunk of the one in six people 65 and older — and by 2030, all boomers will be in that age range, the Census Bureau says.
If the idea of one in two boomers staying put surprises you, another recent survey makes that ratio look tame. In April, Redfin reported that more than three in four older American homeowners (78%) planned to stay in their current home as they age. Of the 900 respondents, 838 were baby boomers.
Partially as a consequence of this, Realtor.com noted the supply of homes for sale at the end of July was 1.33 million units, which equals a four-month supply at the current sales pace, according to the National Association of Realtors. That’s up 20% from a year ago, but well below the six-month supply that economists say represents a balanced market.
"Those waiting for the so-called 'silver tsunami' to upend the housing market with millions of boomer-owned homes coming up for sale may be waiting longer than they think," said Clever.
The Wall Street Journal published an article on the subject and noted a few reasons why boomers, who own half of all of the $32 trillion in home equity in the U.S. according to Redfin, are sticking to where they are. Smaller properties are scarce in many areas and expensive. There are big financial incentives to stay put since boomers may have no mortgage or have one at a cheap interest rate. They might also face a big capital-gains tax bill if they choose to sell now.
Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead
Home care by the numbers
On a per-hour basis, home care can run anywhere from $21 (Louisiana and Mississippi) to $50 (Maine), with a median of $30, according to A Place for Mom, a senior living and home care service. This is different from home health care after a surgery or illness provided by trained medical professionals, prescribed by a doctor, and usually covered by Medicare, Medicaid, and private health insurance.
"Home care can end up being more expensive than other senior care options. Assisted living may be a better option than home care for seniors who require frequent support with ADLs and round-the-clock supervision," noted the report.
What’s more, the forever familiarity of that home you’ve loved so well can be uprooted by other expenses necessitated by changing health. Wheelchair lifts can run as much as $15,000 – while other costs may include $9,500 to add a walk-in or roll-in shower with safety grab bars and non-slip flooring to a bathroom, according to the home improvement website Fixr.
And if you want to remodel a home with universal height sinks and countertops, lever replacements, broader hallways and ramps, expect to cough up as much as $50,000, Fixr says. (While you’re at it, get rid of that special rug you and your sweetie bought on that globetrotting trip–it could send you flying across the room.)
Perhaps aging at home is worth the potential outlay to you. But it also pays to weigh how a retirement community can take a mighty big load off your shoulders as it handles meal preparation, property maintenance and other domestic chores you’d rather not shoulder.
The national median cost of independent living and assisted living in 2024 is $3,100 a month and $4,995 per month, respectively, per A Place for Mom. Selling your home and pocketing a half-million dollars in equity can fund that less-stressful lifestyle for 13 years.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.