How the sharing economy can help provide affordable housing in retirement

With the aging and increased longevity of the baby boomers, our country faces record population shifts, putting pressure on the housing sector. The current market cannot satisfy older Americans’ requirements for affordable and accessible living spaces with access to social activities and support services. If people don’t have these essentials, they struggle to live healthy, safe and independent lives.
The demographic change will burden the housing stock, community readiness and health care systems, beating down the standard of living even further. Today, housing is the largest expense in household budgets. It’s the most critical concern I hear from elder orphans — people living alone without support from a spouse, partner or children.
Medical expense runs second, since 92% of older adults have at least one chronic disease, and 77% have at least two, making accessibility, the proximity to stores, services, social events and transportation essential.
SENIOR LIVING HOME COSTS
Applying data collected by Seniorcare.com, the following stats illustrate the housing cost concerns for older Americans. The values show the high concentration of home loans.
Percentage of seniors (age 65+) with a home mortgage and the monthly budget spent on housing expenses:
• Arlington: 46% have one, 54% do not and 21% pay 35% or more.
• Ashville: 37% have one, 63% do not and 22 % pay 35% or more.
• Boise: 41% have one, 59% do not and 19% pay 35% or more.
• Cape Coral: 46% have one, 54% do not and 31% pay 35% or more.
• Colorado Springs: 44% have one, 56 % do not and 19% pay 35% or more.
• Des Moines: 33% have one, 67% do not and 21% pay 35% or more.
• Lexington: 40% have one, 60% do not and 16% pay 35% or more.
• Lincoln: 31% have one, 69% do not and 16% pay 35% or more.
• Nashville: 37% have one, 63% do not and 19% pay 35% or more.
• Pittsburgh: 27% have one, 73% do not and 14% pay 35% or more.
• Raleigh: 45% have one, 55% do not and 21% pay 35% or more.
• San Francisco: 41% have one, 59% do not and 28% pay 35% or more.
• Seattle: 62% have one, 38% do not and 36% pay 35% or more.
Aging Americans do not have the resources to pay and manage their housing costs since 50% of 46.2 million Americans (age 65+) had less than $22,248 in yearly income from all sources in 2014.
Is there a solution for affordable housing?
THE SHARING ECONOMY
Shared housing could be an excellent option for many and provide socialization benefits also. Multigenerational housing is another good choice (backyard “grandma pods”, in-law suites and living spaces designed specifically to handle multiple generations with aging-in-place features).
Matching sites to help people find roommates, affordable housing options and care support could make the process of finding solutions easier. Supporting those who can afford to stay in their home (but need help with upkeep, household chores, personal care) via subsidized assistance can be beneficial to elders, families and society.
ROOM RENTALS
Formal co-housing is not necessarily less expensive. You can rent a room in your house. Put your name on a wait list for low-income senior housing. Contact a local village in your area, as they might have contact with housing options with members of the community, as well as possible cheaper housing.
Co-housing is an answer. AirBnB could play a big part if you live in an area that attracts tourism. Even if you’re not in this type of location but close to a major highway, your place could be an attraction. Renting out a room could help.
TINY HOUSES
I’m intrigued with tiny house movement. Personally, I see it is a great option for aging adults, especially baby boomers, who want to scale back, reduce their monthly expenses and still have their private space. I see small house communities as an affordable alternative to traditional senior housing.
INTERGENERATIONAL AND COOP DEVELOPMENTS
Communal living may be an excellent option for older adults experiencing increasing health issues that make it difficult for them to live alone. Micro-apartments, home sharing, multi-gen housing and other cooperative living arrangements are all excellent options for reducing expenses.
CLUSTER LIVING
Aside from financial and health concerns, housing is threatened by loss of family caregivers (adult children) who burn out. One housing option, similar to co-housing (matching elders based on need), is called cluster living; individual apartments surround ‘common living areas’ (living room, kitchen, dining room). The able help the unable, and caregiver support is available as needed.
HOMESHARING
Studies highlight financial hardship and social isolation as two of the greatest concerns for older Americans. Many live in homes they own, often with more space than they need, but cannot afford to downsize. Homesharing addresses this challenge and creates new opportunities. A compatible roommate with common interests, experiences and habits can provide a greater sense of security, helping hands, increased income and a good laugh — making all the difference later in life.
ALTERNATIVES TO RESOLVE HIGH COSTS
Co-housing is, of course, an option, but for those aging in place alone, we need other choices. Federal, state and local policymakers can act to protect seniors using tools that are already in place. For instance, an increase in the annual allocation of the Low-Income Housing Tax Credit would be a good idea, as more than a quarter of households benefiting from this tax credit are seniors.
Carol Marak is an aging alone advocate, columnist, speaker and editor at Seniorcare.com. A former family caregiver, Ms. Marak earned a Fundamentals of Gerontology Certificate from the USC Davis School of Gerontology and writes about personal concerns while growing older.