Affordable Versus Market Rate Senior Housing
In general, costs for both housing and health services have increased significantly over the course of the decade. As a result, many seniors simply do not have sufficient income or wealth to afford market rents at newer buildings. I think it’s important to note, however, that as a group, today’s seniors have greater wealth than previous generations. This wealth has lead to the explosion of contemporary products like independent, assisted living, and memory care housing, as well as cooperatives. On the flip side, excluding some areas (particularly the core of the Twin Cities), demand has not increased at the same pace for deep-subsidized senior apartments for very-low-income seniors.
Still, for many seniors who want to move from their single-family homes to more maintenance free housing, market rate independent facilities are too costly but they do not income-qualify for deep-subsidized housing (e.g., HUD apartments with rents based on 30% of adjusted gross income). To meet this demand, many developers and local jurisdictions have developed “affordable” senior apartments. Often these apartments have liberal income-limits (80% of area median income – or $44,800 for a single senior in the Twin Cities) allowing most seniors to qualify. With set rents that are typically a couple hundred dollars less than market rents these affordable buildings have been very well received.
For frail seniors who need housing with support services, the options for affordable housing are more limited. Nearly all newer service-enriched housing facilities (such as assisted living) are market rate, and most accept only a few very-low-income seniors with Elderly Waivers to cover their monthly fees. The primary housing options for frail seniors with low incomes are to receive home health care while living in subsidized independent housing and, eventually skilled care facilities that accept Medicaid when their care level rises.
0 Comments
Name and email are required. We promise not to share your email address with anyone.