Addressing the Needs of Middle-Income Seniors
To build long-term, sustainable businesses, home builders and developers need to forecast the future of our industry. And nothing is more important for that than understanding population trends, especially for seniors.
One thing we know is that the number of seniors in the United States is growing dramatically. According to the Population Reference Bureau, an estimated 47 million Americans are over the age of 65. That is expected to double to 100 million in the coming decades, with particularly high growth in the 75-85 age group by 2029.
So how does our industry provide the kind of housing this population wants and needs?
On one hand, high-income seniors have done well; the recent Survey of Consumer Finances by the Federal Reserve indicates that the average total assets among retirees has doubled from 1989 to 2016. Those seniors have many housing choices. On the other hand, for very low-income seniors, substantial government programs such as Section 8 and Medicaid are available to support decent housing choices.
But there is a group of seniors who don't fall under either of those categories; they constitute the "missing middle" of seniors. They have too much income to qualify for public assistance, but they are not affluent enough to access different housing choices or personal services.
Fortunately, new research into the "missing middle" is shedding light onto this important and growing group, including:
- "The Forgotten Middle: Many Middle-Income Seniors Will Have Insufficient Resources for Housing and Health Care," a report from nonpartisan, objective research organization NORC at the University of Chicago
- "What Can Be Done to Better Support Older Adults to Age Successfully in their Homes and Communities," a study issued by the Harvard Joint Center for Housing Studies
- Find land somehow that is reasonably priced and near some public services, such as senior centers and shopping.
- Work with local officials to speed the entitlement process for this kind of housing. After all, age-restricted communities are not a burden on school systems, and they generate significant property tax revenue.
- Find ways to bring construction costs down, whether by architecture that emphasizes very simple rooflines and layouts, or via innovations such as panelization or modular manufacturing.
- Wide doorways and turnarounds
- Easy access, and if possible, no threshold
- Smaller overall dwelling sizes
- Solid but basic finishes
- Good value appliances
- Garages if at all possible, especially in cold weather climates