The U.S. can’t handle the ‘silver tsunami’ of millions of baby boomers needing housing in their retirement years

The United States is facing a significant challenge in providing adequate housing and care for its aging population, according to a new report from Harvard University’s Joint Center for Housing Studies. The study warns that without sufficient government assistance, many older adults may have to forego necessary care or rely on family and friends for support, potentially leading to homelessness.

Jennifer Molinsky, project director of the center’s Housing an Aging Society Program, emphasizes the need for increased governmental assistance, especially given the growing number of older Americans, particularly baby boomers born after World War II. The report reveals that in 2021, federal housing assistance programs like Section 8 or Section 202, which offers housing with supportive services for older individuals, only met the needs of slightly over a third of eligible renters aged 62 and over.

The report suggests the exploration of creative housing solutions for individuals with fixed or declining incomes and inadequate savings. Options include shared housing arrangements, accessory dwelling units (ADUs) like casitas or granny flats, and cohousing communities where individual homes, including tiny homes, are clustered around communal spaces.

Over the next decade, the U.S. population over 75 is expected to increase by 45%, reaching nearly 25 million. Many of these individuals are anticipated to face financial challenges. The report notes that in 2021, almost 11.2 million older adults were "cost-burdened," spending more than 30% of their income on housing.

High cost-burden rates for renters aged 65 and older were identified in popular retirement areas like Las Vegas, San Diego, Raleigh (North Carolina), Miami, and Daytona Beach (Florida). Homeowners in this age group are also grappling with rising mortgage debt, with the median mortgage debt for homeowners aged 65 to 79 increasing over 400% from $21,000 in 1989 to $110,000 in 2022.

The challenges extend to obtaining necessary services as older adults age, with the costs of long-term care averaging over $100 per day. The report emphasizes the disparities in cost burden among older people of color, particularly Black and Latino households, and singles living alone, who are more likely to be cost-burdened compared to married or partnered couples.