The Equity Paradox Facing Senior Homeowners

Lisa Mailhot  |  April 25, 2024

Buyers

The Equity Paradox Facing Senior Homeowners

 

Older homeowners like Susan Apel and Keith Irwin paid off mortgages expecting home equity would allow downsizing but are struggling to find affordable, suitable one-floor options despite having substantial equity.

Their situation highlights concerns that homeownership may no longer provide the expected retirement cushion for some seniors as mortgage debt rises and accessing equity through reverse mortgages becomes costlier and more complex.

The lack of appropriate housing supply for aging exacerbates the issue, with developers favoring multi-level properties over single-floor homes, leaving many seniors trapped in increasingly difficult-to-maintain houses.

While still a valuable asset, policymakers, and the housing industry must address older homeowners' challenges through streamlined reverse mortgage programs, broadened lending criteria, and incentives for developing age-friendly housing to alleviate this growing crisis.

Recognizing and accommodating older homeowners' unique needs through a more inclusive, supportive housing market is crucial to ensure they can age gracefully in suitable living environments.

Bottom Line

If you or someone you know is considering downsizing or exploring housing options in Orange County, let's connect. I'd be delighted to assist you in navigating the local market and finding the perfect solution for your evolving needs.

 

 

Reference: “Older homeowners wonder: Is it ‘aging in place’ or simply stuck?” by Paula Span | The New York Times. Published on April 24, 2024.

 


RECENT BLOG POSTS

Real Estate in Flux: What NAR’s Settlement and the Batton II Lawsuit Mean for the Industry

The NAR settlement may have closed one chapter, but lawsuits like Batton II and Gibson show the legal battles over real estate commissions are far from over. Discover … Read more

7 Essential Tips for Couples to Master Budgeting Together

Learn how to budget as a couple with these 7 practical tips! From setting clear financial goals to automating savings, discover strategies to reduce stress, align prio… Read more

Trump’s Economic Agenda and Its Impact on Mortgage Rates in 2025

With mortgage rates hovering near 20-year highs, economic policies, inflation concerns, and federal decisions could shape affordability in 2025. Discover how these tre… Read more

6 Positive Thanksgiving Conversation Starters to Brighten Your Holiday

Looking to keep Thanksgiving conversations uplifting? Discover six positive icebreakers that foster joy and connection, plus three topics to avoid for a stress-free ho… Read more

Real Estate Lessons Inspired by Hawaii’s Islands

Discover how Hawaii’s natural beauty and cultural wisdom provide insights for navigating the dynamic real estate market in Orange County. Explore adaptability, sustain… Read more

Climate Shift Sparks Surge in Low-Risk Home Value Growth

Americans are prioritizing climate resilience in homebuying. Low-risk properties are now appreciating faster than high-risk ones, reflecting a pivotal shift in market … Read more

7 Essential Steps Student Loan Borrowers Should Take Before 2025

With potential changes to student loan forgiveness and repayment programs on the horizon, borrowers must act now to protect their financial future. These seven steps w… Read more

Timeless Elegance Meets Modern Design: Inside Corona del Mar’s $49.5M Blufftop Estate

Discover the stunning transformation of a Corona del Mar mansion, blending old-world charm with contemporary elegance. Listed at $49.5M, this oceanfront property offer… Read more

Unlock Your Homebuying Potential with Zillow’s 'BuyAbility' Tool

Zillow's new 'BuyAbility' tool makes homebuying easier by helping buyers focus on homes they can afford. Discover how personalized insights and real-time updates empow… Read more

We are excited to assist you in finding your perfect home

Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most