Seniors Struggling to Keep up With Housing Costs

 

A new survey from Property Shark states that 30% of respondents over the age of 45 stated they’ve struggled with housing costs over the past year. 

The report states those with lower incomes reported higher rates of housing-cost burdens, but cost-related issues were apparent on all economic levels, including retirement timelines. 

Of those earning between $20,000 and $40,000 a year, 42% of respondents say the struggled with housing costs. That number falls to 27% for those making between $40,000 and $60,000.

“This suggests that, beyond shifting attitudes regarding retirement—with many older adults choosing to stay employed for reasons other than financial concerns—there is also a strong need for continued employment to keep up with the daily cost of life,” the report states. 

For respondents that make between $60,000 and $100,000, 42% said they had issues with the cost of housing. Just 6% of respondents who make more than $100,000 found it difficult to keep up with housing costs. 

Homeowners looking to retire within the next five years are the most financially stable, as 23% had difficulty with housing costs. That number increases to 30% and 31%, respectively, for people retiring in the next five to 10 years. 

While 30% of seniors struggle with housing costs, 82% are not interested in monetizing extra space in their homes for additional income. Eight-percent of senior homeowners are exploring ways to bring in additional income through extra space. 

Despite their struggles in the market, a new report by the National Association of Home Builders (NAHB) reported earlier in August that the senior housing market remained solid in Q2 2019, falling just one point from the prior quarter. 

The NAHB states the drop was due to “softness in traffic of prospective buyers.” 

“Although the single-family [Housing Market Index] fell slightly, builder sentiment still remains strong for this segment of the market,” said Karen Schroeder, Chair of NAHB's 55+ Housing Industry Council and VP of Mayberry Homes in East Lansing, Michigan. “In fact, the reading of 71 is just one point off from the all-time high of 72 from the previous quarter. We expect the 55+ housing market to continue on a positive path moving forward.”