A new survey from Property Shark s [1]tates 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 [2], 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.”