Pandemic Has Further Exacerbated the Affordable Housing Crisis, Especially For The Elderly
As oft-reported here at ManufacturedHomes.com, the nation, for several years, has been experiencing a serious and continuous affordable home crisis that has, in essence, put traditional “site-built” homeownership out of reach for millions of hardworking lower to middle-income families.
In the aftermath (hopefully) of the pandemic, it is reasonable to assume that the affordability gap will be further exacerbated with the inflationary cost of building material components and lack of new on-site construction.
QuoteWizard, a LendingTree company, released a new April 19, 2021 report on the increase in U.S. housing costs. These rising costs are making even the average price of a home more unaffordable. “Our team of industry analysts found that over the last decade, the median price of a home is up nearly 70%. The median income, however, is up less than 30% over the same time period.”
Many younger first-time homeowners have discovered that today’s modern manufactured and modular homes check all the boxes for fulfillment of the uniquely American dream of homeownership and is “everything a home should be,” including affordability, quality, features, amenities and value appreciation, with acquisition cost continuing up to one-half that of a comparable site-built home.
Another ever-expanding demographic discovering the affordability, quality, and safety of today’s manufactured housing is the aging population. If actuarial prognostications are correct, and we hope they are, we can expect a long life after retiring from the workforce. Sounds great. However, the concern is will we be able to enjoy and financially sustain those extended years? The cost of housing will have the biggest effect on affordable sustainability.
According to the Terwilliger Center at the Urban Institute, going forward the shortage of affordable housing for the growing elderly population is itself a crisis in the making.
“AGING IN-PLACE” HOPE MAY NOT BE AN AFFORDABLE OPTION FOR THE ELDERLY
According to Harvard’s Joint Housing Center Study, one out of three U.S. households will be headed by someone over 65 by 2035, and by 2038, the number of heads of households aged 70-79 will hit 10,7 million. With the number of 80-and-over households projected at 17.5 million.
Other studies have shown that twenty million “baby boomers” (age 62-72 years old) have reached retirement age. Most are realizing that maintaining their existing home and lifestyle for extended years with limited income is not financially sustainable.
In fact, studies have found that 32% of manufactured home households are headed by a retiree, with only 24% of traditional site-built homes are headed by a retiree.
Senior homeowners hoping to “age-in-place” are often in aging homes that need upgrades — only 3.5 percent of U.S. homes have the kinds of safety and mobility features important for aging in place, according to Harvard research.
The efficiency and flexibility of the manufactured home building industry produce high-quality homes that meet the criteria of the aging population, offering customization for those with existing mobility issues, quality construction, energy efficiency, low maintenance, fire and wind safety, top of the line appliances, and fixtures. All of this, and will have a price of up to 50% of the cost of a comparably sized home built on site.
You are invited to click the following ManufacturedHome.com blog postings about manufactured housing and manufactured home living that many (especially “seniors”) might find most interesting.