Senior Health - Where Do The Poorest Of The Old Live?

"Poverty — the most deadly and prevalent of all diseases." — Eugene O'Neill

More than 5 million elderly households are rented. As the chart shows, older renter households are increasingly headed by those aged 75+. In 1980, that age group comprised 44% of older renters. The percentage grew steadily, and by 1995, the over-75 segment comprised 53% of renters. As we live longer, the percentage of over-75 renters will grow.

Elderly rental households tend to be poor and headed by women/minorities. Renters have higher housing costs and lower (usually fixed) incomes than homeowners.¹² They have reached old age with few assets and little chance now of acquiring any. Where once they might have moved in with relatives, they now must rent. A Cornell University study found that the percentage of elderly women who moved in with family declined from 46% of women over 75 in 1960 to 19% in 1990. For more, see http://www.news.cor nell.edu/science/Sept95/st.poorseniors.html.

Women, minorities, and the oldest old (age 85+) are the largest and fastest growing segments of the older population.¹³ There will be an increasing demand by the most economically vulnerable people for decent, affordable rental housing with features adapted to meet the needs of the old. Can the market meet those demands?

By most accounts no, not if present trends continue. The biggest problem is that housing costs are simply too high. The U.S. Conference of Mayors (who should know as well as anyone) summarizes the problem this way:

• "1.4 million elderly and 2 million people with disabilities pay more than 50% of their incomes for housing or live in substandard housing.
• Section 202¹⁴ elderly funding has been flat at $679 million for several years, despite rapid growth in the elderly population.
• Section 811¹⁵ funding for the disabled has declined by nearly $100 million in the past decade, from $387 million to $271 million.
• In the past five years, about 100,000 units of Section 8 housing for the elderly have been converted to more expensive market rate housing."

AARP Board Member Keith Campbell notes: "If we fail to meet these challenges, the likely result will be a crisis in both affordability and availability in housing, creating the possibility that we will see an America with a significant increase in underhoused, under- served older citizens. And a result of this could be a substantial increase in costly and premature institutionalization of older people."

Sources: Chart: "Housing Characteristics of Older Households," AARP calculations from American Housing Surveys, AARP. "Section 202 Supportive Housing for the Elderly," AARP. AARP data retrieved August 23, 2002, from http://research.aarp.org. U.S. Conference of Mayors, Mayors National Housing Forum Fact Sheet, Frank B. Hobbs, "The Elderly Population," U.S. Census Bureau, http://www.census-gov/population/www/pop-profile/elderpop.html.