What Are the Biggest Senior Housing Costs to Consider?
Housing costs for seniors are on the rise, and for those who are firmly entrenched in middle-income brackets, it’s going to be a difficult path ahead to counter those higher prices. A recent senior housing study from the National Investment Center for Seniors Housing & Care (NIC) showed that 54% of middle-income United States seniors who were age 75 and older won’t be able to afford the costs of independent living or nursing home care.
According to the study, which garnered a lot of media coverage upon its release, the key reasons for this are a mix of higher housing costs, higher costs for senior care, worsening health conditions and a smaller number of family members who can assist financially. Children of baby boomers are fewer in number and often don’t live in close proximity to their boomer parents.
Current estimates show that by 2029, there will be nearly 15 million middle-income seniors, almost double the number (8 million) estimated in 2014. If you’re a 75-year-old senior with $25,000 to $75,000 a year in financial resources, you’re faced with a twofold dilemma. That dollar range is generally too high to qualify for Medicaid assistance but not nearly high enough to afford the current slate of multifamily senior housing options.
Add the extra costs of medical expenses, food, transportation and daily living expenses, and you can see why living longer is actually a daunting scenario. Let’s break down the biggest senior housing costs you will have to consider.