To Make Senior Housing Affordable, Promote Smarter Development

By Anthony Vivirito, TAT Senior Associate | Special to Banker & Tradesman

According to Census data, about 10,000 people living in the U.S. turn 65 every day, while life expectancy for these folks continues to increase. The U.S. seeing its largest-ever per-capita population of seniors is great news: we are living longer, healthier lives than at any point in our history. However, the data also suggests a present crisis of senior housing availability. Growth of demand for assisted living options, especially for senior in low to moderate income brackets, outpaces supply.

State-level restrictions on use of Medicaid funds are steering many relatively independent seniors who require some help with activities of daily living – for whom assisted living facilities (AFLs) are ideal – often wind up in congregate settings like nursing homes, which are much more restrictive than they need, and more expensive. A recent cost-of-care survey indicates a median annual assisted living cost of roughly $74,000, about 35 percent lower than the cost of a semi-private nursing home room. But that cost is still too high for many seniors and their families.

We are already faced with a growing shortfall of affordable assisted living units, including here in Massachusetts. We urgently need to spur the development of affordable AFLs, immediately. Lawmakers here at home and in Washington must act to address the crisis.

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