As home builders endeavor to meet demand, their efforts often fall short, particularly for a growing demographic: aging adults. In the pivotal year of 2023, about 30% of new constructions marked the housing inventory. However, data from the 2022 American Community Survey paints a stark picture: the typical age of owner-occupied homes stands at 40 years old. This means that many aging adults find themselves residing in dwellings constructed around 1984 or earlier.
The survey, spanning from 2018 to 2022 and conducted by the U.S. Census Bureau, offers insights into the shifting landscape of American living conditions. It reveals an ongoing trend: the aging of owner-occupied housing is outpacing the pace of new construction.
Residential construction has grappled with challenges in keeping up with demand since the aftermath of the Great Recession. Consequently, the average age of owner-occupied homes has steadily risen, now hitting 40 years old compared to 27 years old in 1991. A mere 9% of owner-occupied homes in the U.S. were built between 2010 and 2019, with a staggering 60% erected before 1980. This distribution underscores the pressing need for updates or renovations to aging infrastructure, fueling a growing demand for remodeling services.
The National Association of Home Builders (NAHB)/Westlake Royal Remodeling Market Index reflects a positive outlook among professional remodelers, reaching 67 in the fourth quarter. However, challenges such as soaring material costs, labor shortages, and zoning restrictions continue to hinder both new construction and renovation endeavors.
Rick Rybeck, Director at Just Economics, underscores the disparities in taxation and regulatory obstacles that pose barriers to progress in the housing market, particularly for aging adults. The conventional property tax system often penalizes owners for improving or constructing buildings, while inadvertently rewarding neglect. This imbalance, coupled with soaring land prices, further complicates efforts to address the housing needs of aging adults.
As we approach 2024, the forecast for homebuilding offers a blend of hope and caution. While the industry has made strides, experts anticipate ongoing challenges in meeting the demand for new homes, particularly those suitable for aging adults. Bridging the housing supply gap necessitates innovative solutions, including revisiting property tax structures and fostering the development of age-friendly housing options. Despite the hurdles, the quest for accessible, age-friendly homes remains a priority, ensuring that every aging adult finds comfort, safety, and dignity in their living environment.
I urge you to join the NAIPC National Aging in Place Council to help us build a better aging community.
Written by: Heather Brooks - How 2 Age Your Way
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