Five Takeaways From a Study on the Middle-Income Seniors Market

A University of Chicago study published in Health Affairs predicts the percentage of middle-income seniors who cannot afford senior housing by income alone will grow to 81 percent in the next 10 years, reports National Real Estate Investor . These individuals will have $60,000 or less in annual income and other annualized assets, below the probable average yearly assisted-living rental rate of $62,000. Fifty-four percent of middle-income seniors with housing equity will have annual income of or below $60,000, and the gap will be especially significant among 75- to 84-year-olds. The study also determined the privately-run senior housing sector has overcompensated with high-income residents, and 16 million middle-income seniors will likely find housing unaffordable by 2029. Even if 46 percent of seniors are hypothetically able to afford housing, they must be willing to deplete their assets completely and discard nest eggs. The study concludes that these and other trends will establish a major unmet need in the senior housing sector, with potential remedies including private-investor pools interested in pursuing socially responsible investments with a suitable risk profile.