WASHINGTON—With many younger Americans priced out of new housing, and many older Americans not selling their homes, a new report reveals how older Americans are comprising a growing percentage of overall homeowners.
According to Fannie Mae, In 2022, Americans aged 60-plus represented 29% of the adult population and 44% of homeowners. The reports notes that in the next decade, the 60-plus population is forecast by the Census Bureau to increase to 32% of the total adult population.
“If household formation and ownership rates remain unchanged from 2022 levels, the change in population levels alone would mean the 60-plus population could approach nearly half of all homeowners in the next decade,” Fannie Mae said. “Given the size of this homeowner segment, we thought it was important to better understand their financial plans – and housing’s role in those plans – to determine how that might impact future housing market dynamics.”
About the Poll
Fannie Mae said it recently polled a nationally representative group of homeowners aged 60-plus. Approximately two-thirds were already retired, and, of those still working, a majority planned to retire in the next five years. All were asked about their financial plan for retirement and the role they expect their home to play in that retirement.
An additional group of 307 older homeowners with lower incomes and lower amounts of retirement assets and savings were also surveyed to understand the differences in attitudes and needs among older homeowners facing greater financial constraints, Fannie Mae said.
“Prior to fielding the survey, we also conducted in-depth interviews with 25 older homeowners to gain deeper insight into their motivations and attitudes, and to better inform the survey work,” Fannie Mae said.
Key Findings
Key findings, according to Fannie Mae:
- Older homeowners are confident in their retirement planning. Seventy-two% were confident they will have enough income during their retirement, and that confidence grew with age. Economically disadvantaged homeowners were less confident, at 55%
- Most are not interested in using their home equity as retirement income. Only 15% said that they would consider using their home’s equity for extra funds needed during retirement, and economically disadvantaged owners felt similarly
- A majority plan to age in place. Fifty-six% said they will never sell; 27% said they might sell at some point; and only 17% said they have already sold or plan to sell their home. Fannie Mae said the survey found retired older adults who sold their homes said they did so for a variety of reasons, including moving to a home that better fits their needs, financial reasons (e.g., lower taxes, lower cost housing), living closer to family/friends, and living in a warmer climate.
- Many report feeling an emotional and financial “lock-in” effect. Older homeowners’ disinclination to move is tied to the love of their home, pride in debt elimination (especially their mortgage), community engagement, and access to known services.
- Although generally averse to debt, there is modest interest in using loan products for home improvement, and nearly half would be interested in a home-maintenance/repair service designed for retirees at a lower cost. Twenty-six% expressed interest in a home improvement loan, and 48% were interested in a home-maintenance/repair service at a lower cost, representing the largest interest across programs and services, Fannie Mae reported.
- Over one-third are open to retirement advice. Thirty-eight% said they were open to receiving advice; and the younger the homeowner, the more open they are to receiving retirement advice (43% of those under age 65 vs. 33% of those over age 80)
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