Currently, there are several affordable housing options for older adults who are facing financial insecurity. These options include aging in place—such as staying in your home or sharing a home or apartment with loved ones—or moving into a subsidized senior living facility and/or assisted living facilities.
Staying in Your Home
This option is ideal if you do not need comprehensive care for your daily living—or just need some caregiving assistance. In addition, it may be most affordable to stay in your current home if your mortgage is paid off or if your rent is low. If you’re interested in aging in place but are struggling to pay your mortgage, you might consider a reverse mortgage, says Gottlieb.
“If you have enough equity in your home, you can take some of that equity out to live in your home at no cost, other than paying expenses like your local taxes and any homeowner’s association (HOA) fees,” says Gottlieb.
Selling your home to a company like Rentback.com or Sell2rent.com and renting it back from them is another option, and may offer you more equity in your home than a reverse mortgage, says Gottlieb. Home maintenance is often included in this option as well.
Living with Family
“The most affordable arrangement for seniors is living in a supportive family environment,” says Lakiesha K. Oliver, clinical program manager at Solutions of Change, a nonprofit organization in Las Vegas. Sharing a home with your children or other relatives is generally either free or low-cost, and it offers the advantage of having family members available to help when you need assistance.
Public and Subsidized Senior Housing
The United States Department of Housing and Urban Development (HUD) offers affordable public housing apartments and single-family homes for older adults in need. Typically, these senior housing options come equipped with accessibility features such as ramps and bathroom handrails, transportation services, cleaning services and resident activities.
Subsidized rents are usually based on 30% of your income, says Gottlieb, meaning if you earn $1,000 a month, you would pay $300 for housing.
However, availability of subsidized housing can be an issue. “They’re few and far between, and normally they are beyond or at capacity, with wait lists that may be months or years,” adds Gottlieb. For more information about HUD subsidized housing in your area, speak to a HUD housing counselor who specializes in your location.
Assisted Living and Residential Care Options
Living in an assisted living facility or residential care facility is an option if you need help with home maintenance or activities of daily living (ADLs), such as bathing, getting dressed and using the toilet.
Assisted living facilities offer meals, activities and help with ADLs and medication management, if necessary. The average cost of an assisted living facility is about $4,000 a month, or $48,000 a year, according to the American Health Care Association (AHCA) and National Center for Assisted Living (NCAL), though the price depends on the state in which you live[3]Facts & Figures. American Health Care Association. Accessed 12/2/2023. .
Residential care facilities typically have 20 or fewer residents and offer 24-hour care, meals and assistance with ADLs. These are also among the most expensive care options, costing an average of $4,908 a month for a shared room[4]Cost of Care Survey . Genworth. Accessed 11/10/2022. .
