Freddie Mac: Majority of adults likely to age in place, survey finds

66% of American adults age 55 and older expect to age in place, and over the past five years, the cohort has made notable financial gains. However, the growing trend of seniors choosing to age in place could contribute to the housing shortages seen across the country, as homes that seniors will stay in longer will not be available to those looking to become homeowners.

That’s according to a new Federal Home Loan Mortgage Corporation (FHLMC, or “Freddie Mac”) research brief released this week.

“In two surveys, first in 2016 and again in 2021, Freddie Mac sought to track the attitudes and perceptions of American adults aged 55 and older in several key areas, including mobility in the housing market” , indicates the research dissertation.

These are important trends to watch for two reasons: the first is that members of the baby boomer generation hold the majority of the housing wealth in the United States, and the second is that the supply of housing has fallen to record levels over the past two years. the brief says.

Compared to 2016 surveys, seniors feel more confident in their financial situation and ability to live comfortably in retirement, rising from 66% in 2016 to 72% in 2021. Homeowners feel more confident than renters to a large extent, 79% to 38%. Tenants registered no change in their own feelings about this between 2016 and 2021.

These recorded financial gains condition the choice to age in place.

“Today, 66% of [the 55-plus] population reports planning to age in place,” the brief read. “Little change from 2016, when 63% said the same. Given their reported financial gains over the past five years, however, they might be better equipped to do so.

Additionally, 66% of respondents also say they expect some need for home renovations or modifications to more easily meet their needs later in life. However, when it comes to the ability to create wealth in the United States, it’s hard to beat the prospects that come with home ownership, the brief explains.

“This divide between renters and homeowners in this population underscores the long-term value of homeownership, as homeowners are much more likely than renters to feel more comfortable financially, confident they can take retire comfortably, pay for long-term care, transfer their wealth to family, and live comfortably in their current home until retirement,” the brief explains.

Read it research paper at Freddie Mac.

Comments are closed.