Good news for seniors who own their homes: according to a new report released by the Mortgage Bankers Association (MBA), home-owning seniors are more likely to be financially secure and experience fewer health issues than those who rent.
When compared to individuals who rent their residences, home owners tend to be better off from a financial standpoint and are more able to adapt their living space to accommodate any age-related issues according to the study, "A Profile of Housing and Health among Older Americans.”
"Owning a home provides the single largest asset in most Americans' retirement portfolios, while renters have far more difficulty modifying their living space to adapt to any of the myriad physical ailments that tend to affect older people," said Michael Eriksen, one of the study's lead authors and a professor from Texas Tech University.
Median housing equity robust for seniors
The analysis found there are more than 47 million American households headed by individuals ages 55 and older. The median housing equity totaled $125,000 and half of older homeowners’ portfolios were composed of housing wealth.
Mike Fratantoni, vice president of research and policy development for the MBA, indicated that the real estate industry must adapt to the ever-changing needs of consumers in the marketplace, many of whom will be seniors.