By this point, the information should be second nature: Aging in place is an increasingly common desire among homeowners who want to save money, avoid costly assisted-living facilities, stay connected to their communities or all of the above.
As the preference grows, one group — homebuilders — is uniquely positioned to address these desires and profit from them. This is according to an article published by Kiplinger, which took a closer look at the dynamics associated with the cost of living, and the kinds of renovations needed needed to facilitate aging in place versus another arrangement.
“The cost of nursing home care is soaring: $9,000 per month, on average,” the column stated, citing data from Genworth Financial. “In big cities, where everything costs more, that figure is $13,000. Persistent staffing shortages are a major cost driver. Staying in an assisted-living facility averages $5,500 per month, or $7,000 in high-cost metros.”
In-home care, meanwhile, can vary significantly between $3,500 to $7,000 per month. Staying at home is often not a cost-free option, since it often requires renovations to a home to make it more accessible for people likely to experience some kind of mobility issues as they age.
But renovations can also be grander. They can include the addition of an entire room to the first floor of a multistory home, bathroom renovations that could require the replacement of a tub or shower with a more accessible alternative, or the addition of a wheelchair ramp leading to the front door.
Builders are more actively thinking about how to efficiently serve these prospective clients. Some people are more forward-thinking about what life will look like, even if they’re not in the senior demographic just yet.
“More Realtors are reporting younger clients who say they want a ’feet-first house,’ a place where they can live for the rest of their lives,” the article explained. “One example of thinking ahead: Some builders are stacking closets on upper and lower floors, to create the space for a future elevator, if one is needed. Builders and contractors that are interested can be certified as an Aging in Place Specialist by the National Association of Home Builders (NAHB).”
Financing these improvements can be an obstacle too. The article cites a reverse mortgage as a potential financing vehicle for older homeowners, since the debt doesn’t need to be satisfied until the home is sold.
Is the article addressing people near or in retirement who see the need to move into a new more ideal home to retire in or improving the existing home so that it will endure as a good choice for a retirement home?
There is a big difference between improving one’s home and buying a recently constructed one. Most homebuilders focus on the construction of new homes rather than repairing or upgrading an existing one.
“Retirement homes” in a resale market substantially consisting of retirement age individuals is one thing but in a market dominant with individuals with children, making “retirement age” changes can greatly reduce value. Of course, all of this must be considered in the light of how the homeowner(s) envisions the future use of that home both now and following death.