Comparing data from two surveys, the first in 2016 and the second in 2021, Freddie Mac has found a growing trend of seniors plan to age in place instead of transitioning to assisted living or senior living residence or downsizing to a smaller home or apartment. The survey also found older individuals may also be financially equipped to do so.
This reversal of previous trends may be a contributing factor to the housing-supply shortage in the U.S. which is causing home prices to increase rapidly and contributing to record-high inflation rates.
In the 2021 survey, 66 percent of respondents stated they planned to age in place with 36 percent certain they would not move again. Additionally, 79 percent of respondents reported having enough extra money to go beyond each payday.
In the survey, 39 percent of senior homeowners stated they were very confident they will have a financially comfortable retirement; and 70 percent of respondents reported they intend to leave their current home or proceeds from its sale to their children or family members. This all suggests that the financial incentives for selling one’s home do not exist for most American seniors.
The survey also looked at seniors who rented instead of owning their home. Of those that rent, 24 percent believe they will not be able to leave anything to their family, compared to only 3 percent of homeowners. This divide between renters and homeowners underscores the long-term value of homeownership and the benefit of generational wealth that exists in owning a home.