The Urban Institute, based on new research, is recommending the expansion of the U.S. Department of Housing and Urban Development’s Section 202 Housing for the Elderly program, more low-income housing tax credits paired with HUD Section 202 operating subsidies, and an expansion of the Housing Choice Voucher Program for older adults.
Its report, “The Future of Headship and Homeownership,” also calls for a general increase in the supply of affordable homes, a tailoring of these homes to meet the needs of future owners and renters, and the taking of more concerted steps to close the racial homeownership gap.
The recommendations come as the research finds that, over the next 20 years, almost all future net household growth will be among older adult households. A 16.1 million net increase in net households will occur by 2040; 13.8 million of those households will be headed by someone older than 65, and 40% of those (5.5 million) will be renters, according to the research.
In the next 20 years, the share of older adult renters also will increase from 22% in 2020 to 27% in 2040, with particularly large increases among older Black and Hispanic renters. The authors project that the number of elderly Black renters will more than double from 1.3 million in 2020 to 2.6 million in 2040.
To support the growth in senior households, the authors stated, policymakers, thought leaders and “changemakers” need to focus on developing and implementing policies that address the specific needs of the nation’s growing aging population.
“We will need policies to support the large increase in senior renters, who are more likely to be cost burdened than their home owning counterparts,” the authors wrote, adding that the large number of older Black renters will be particularly burdened by costs due to significantly lower incomes resulting from decades of policies and practices. “Many seniors lack enough savings for a comfortable retirement, and this problem is likely to continue,” they said.
By 2030, the youngest members of the baby boomers will be at least 65. From 2020 to 2030, the largest growth in households is expected to be in the 75-to-84 age group, followed by the 65-to-74 age group. In that same time period, the increase in households aged 65 and older will be higher than net household formation. There will be 9.6 million more new senior households compared with the 8.5 million more total new households overall.
