More than 10.5 million homes with mortgages in the United States are owned by individuals aged 65 and older, according to a recent LendingTree study. Drawing on U.S. Census Bureau data, the analysis reveals regional trends, lower housing costs for older homeowners, and the significant implications of carrying mortgage debt into retirement.
Key Findings
Older Americans represent a sizable share of homeowners with mortgages in many regions. In Las Vegas, Nevada, 25.75% of mortgaged homes are owned by individuals aged 65 and older, making it the metro area with the highest concentration. Other cities with high percentages include Los Angeles, California, at 25.26%, and San Diego, California, at 25.13%.
At the other end of the spectrum, Texas metros show much lower percentages. Austin, Texas, reports just 14.58% of its mortgaged homes owned by older individuals, closely followed by Dallas at 14.62% and Salt Lake City, Utah, at 14.82%.
Regional Trends
California stands out as a hub for older homeowners with mortgages, with five of the top 10 cities located in the state. In contrast, Texas dominates the bottom rankings, with four metros ranking among those with the lowest percentages. These patterns suggest regional differences in the financial behavior and housing dynamics of retirees.
Home Values and Housing Costs
Older homeowners generally reside in homes with lower median values than the overall population. For instance, the median home value for those aged 65 and older in Las Vegas is $429,600, slightly below the citywide median of $437,900. Similarly, their monthly housing costs are often reduced. In Los Angeles, older homeowners pay a median monthly cost of $2,564, while the citywide median is $3,096.
These figures suggest that while older Americans continue to carry mortgage debt, they may mitigate some financial strain through lower housing costs and property values. However, these savings might not fully offset the risks associated with carrying debt into retirement.
Implications
The data highlights the growing trend of older Americans maintaining mortgages well into their retirement years, posing significant challenges for financial stability. Policymakers and financial planners should take note of these trends to address the evolving needs of this demographic. Programs aimed at reducing housing costs or assisting older homeowners in managing debt could play a crucial role in ensuring their financial well-being.
Understanding these dynamics is critical for supporting retirees while navigating the broader housing market’s challenges. As the aging population continues to grow, these insights will remain vital in shaping future housing policies.
Click here for more on LendingTree’ examination of senior housing across the U.S.
