AARP assesses aging in place, role for reverse mortgages

Influential senior advocacy group AARP has released a new report assessing the prospects for aging in place in the U.S., finding that despite seniors’ overwhelming desires to remain in their own homes as they get older, there is a lot of policy work to do nationwide and inside individual communities to better align with those preferences.

The organization’s national 2024 Home and Community Preferences survey showed that a pronounced majority (75%) of adults at or over the age of 50 want to remain in their current homes as they grow older, while 73% hope to remain at least in their own communities. This finding is much higher than those adults between the ages of 18 and 49 (60% and 63%, respectively).

However, “existing housing policies and community infrastructure are not keeping pace with this increasing need,” the organization said. There also could be a role for reverse mortgages according to one senior AARP leader, but the focus on older people with more limited financial resources is the north star for AARP, she said.

The need for aging in place

“Aging is universal, but where and how we age should be something that we control,” said Deb Whitman, AARP’s EVP and chief public policy officer on a call with reporters this week. “And in this era where roughly 10,000 people are turning age 65 in America every day, we need to find ways to make it easier to age in place.”

Existing housing policies and infrastructure in communities have not kept pace with this preference, however, and older adults face significant barriers toward aging in place that community leaders and lawmakers must address to account for these desires, the organization said.

“Most older adults want to stay in their homes, yet rising housing costs and limited options create serious barriers,” said Rodney Harrell, AARP VP of family, home and community. “To meet this growing need, leaders at all levels and sectors must prioritize affordable, safe, and accessible housing and communities.”

According to data from Harvard University’s Joint Center for Housing Studies (JCHS), seniors spent more than 30% of their income on housing, while federal housing aid only reached 36.5% of eligible households. There are four key barriers to aging in place identified by AARP, including affordability; accessibility; barriers to incorporating more technology into daily life; and a dearth of community resources and readiness to address these challenges.

“Nearly half (44%) of adults aged 50-plus expect to relocate, with housing costs being a primary motivator, including rising costs of rent or mortgage (71%), property maintenance (60%), and taxes (55%),” the findings said. “Over half (51%) of adults 50-plus say they need a home that supports independent aging. Nearly half foresee the need for home modifications to support this, such as grab bars (72%), entryway enhancements (71%), and kitchen upgrades (39%).”

A role for reverse mortgages?

When asked by HousingWire‘s Reverse Mortgage Daily (RMD) about the role that reverse mortgages might be able to play in addressing some of these concerns, Jenn Jones — AARP’s VP of government affairs as well as both a former chief of staff at the U.S. Department of Housing and Urban Development (HUD) and former chief of membership and policy at the National Community Reinvestment Coalition (NCRC) — explained that the program has improved.

“As someone who came from HUD, I know a bit about HECMs,” Jones began. “The program is certainly stronger than it used to be. The increase in asset limits is really focused on people with a significant amount of equity in their homes, giving them the opportunity to take out a reverse mortgage to be able to have a little extra money for retirement.”

But those who qualify for reverse mortgages may also have a less pressing need compared with those who can’t call on a home’s equity to meet these challenges outlined in the report. The FHA recently increased the HECM limit for 2025 to more than $1.2 million.

“My focus has always been on those who don’t have a lot of equity in their homes and are looking for different opportunities for financing home improvements, modifications, or other things like that,” she said. “I’m not sure if AARP has a position on HUD’s most recent action, because it’s focused on people with high amounts of equity in their homes. as they seem focused on people with high-cost homes and significant equity.”

She added that she is “a little less concerned about their ability to manage a reverse mortgage than I am for people who are middle-income and working-class who are trying to figure out how they make all of these home modifications to stay in their homes and continue living in their community.”

AARP also recently highlighted reverse mortgages in an informational video, offering perspectives on the details of the loan and what it entails for any older people considering engaging with the industry.

Potential actions

There are five main proposals that AARP recommends as potential solutions to address the increasing need for expanding aging in place. The first centers on the expansion of affordable housing programs, including those that expand rental assistance and boost investment in the preservation and construction of affordable homes.

Section 8 housing choice vouchers are one such program the organization named, as well as bipartisan legislative efforts like Sen. Maria Cantwell (D-Wash.)’s “Affordable Housing Credit Improvement Act” which held hearings early this year in the Senate Banking Committee.

The organization also recommends eliminating barriers that depress the construction of accessory dwelling units, an increasingly popular option that certain states have aggressively pursued to address housing shortages, and which could uniquely serve the needs of older adults.

Zoning was also singled out as a barrier that could be addressed, and some states and localities have moved to create more inclusive zoning policies but have also run up against community opposition.

Additionally, focusing on making communities more walkable and making broadband internet service more affordable and available was another priority.