More than half of American households are now headed by someone 50 or over and the living arrangements, financial resources, health, and functional abilities of those households will present serious challenges in the years to come, according to Housing America’s Older Adults 2018, a new report released this week by the Harvard Joint Center for Housing Studies.
The new report, which supplements the Center’s annual State of the Nation’s Housing report, cautions that baby boomers, who will soon begin turning 80 and will increasingly need more accessible and supportive housing than currently available. It also warns that many households in their 50s and early 60s may not be financially prepared for retirement. Fewer of these households are homeowners or have built the wealth of their predecessors at the same age.
The report’s analyses of demographic, financial, and geographic data highlight several other notable trends, including:
- Many older Americans are burdened by housing costs: Nearly a third of households age 65 or older (9.7 million) pay at least 30 percent of their income for housing, and more than half of these pay over 50 percent [INTERACTIVE MAP];
- There is a large wealth gap between older homeowners and renters: Median homeowners aged 50–64 had a net worth of $292,000 in 2016—almost 60 times that of the same-age median renter. The difference in wealth between owners age 65 and over and same-age renters is nearly as large;
- While median incomes rose in the last five years for older adults, gains were uneven. From 2011-2016, median incomes rose 9.6 percent for those 65-79 and 5.2 percent for those 80 and over, while those 50-64 saw an increase of only 2.6 percent;
- There is an historically high gap in homeownership rates for older whites and blacks: 81 percent of white households age 50 and over own their homes compared to only 57 percent of older black households. This 24-percentage point gap is the largest disparity since recordkeeping began in 1976; and
Growing numbers of older adults live in low-density areas: Between 2000 and 2016, the share of older adults living in low-density tracts in 95 of the 100 largest US metros rose from 24 to 32 percent, an increase of almost 6 million adults. Providing services and transportation alternatives is more difficult in locations with more dispersed housing. [INTERACTIVE MAP]