The senior housing market is experiencing a massive shift as the population of adults aged 55 and older reaches approximately 103 million in the United States.
According to a study published on the economic research blog ‘Eye on Housing’ by the National Association of Home Builders (NAHB)—based on the 2024 American Community Survey data—households headed by individuals 55 and older occupy 61.5 million homes. This accounts for 46.3% of all occupied housing units nationwide.
Among these households, 78% live in owner-occupied homes, making up 55% of all owner-occupied housing in the country. This indicates that a significant portion of the housing market is concentrated among older property owners.
Demographics and Living Arrangements of Older Adults
The largest age group within the 55-and-older population is the 55-to-64 bracket, making up 40.5%. Those aged 65 to 74 follow at 34.6%, while the 75-to-84 demographic accounts for 18.8%. Adults aged 85 and older number approximately 6.3 million, representing 6.2% of the total 55-plus population.
A large majority of older adults have left the labor market. Among those 55 and older, 60.9% are out of the workforce, 37.9% are employed, and 1.2% are unemployed.
Single-family detached homes remain the overwhelming housing choice. More than 72% of adults aged 55 to 74 live in single-family homes, and roughly 70% of those aged 75 to 84 do the same. However, the trend shifts for those 85 and older, where the single-family homeownership rate drops to 58%. Multi-family housing, such as apartments and condos, increases with age, rising from about 15% for those aged 55 to 74 to 22.2% for those 85 and older.
Living in group quarters, including assisted living and nursing facilities, also increases with age. While it is under 2% for those aged 55 to 74, it reaches 9.7% for adults 85 and older. While most older adults live in conventional housing well into advanced age, distinct housing transitions become apparent past 85.
Mortgage Status and Aging in Place
An impressive 55% of homeowners aged 55 and older own their homes free and clear, without a mortgage or housing debt. The rate of mortgage-free homes rises sharply with age: about 41% for ages 55–64, 58% for 65–74, 69% for 75–84, and a staggering 82% for those 85 and older.
Conversely, the share of homeowners carrying a mortgage drops from nearly 59% for the 55–64 age group down to roughly 18% for those 85 and older.
A major challenge in the senior housing market is the age of the housing stock. Roughly half of homeowners 55 and older live in homes built before 1980. Specifically, 24.5% live in homes built between 1960 and 1979, and 25.4% reside in homes built before 1960. Homes built between 1980 and 1999 make up the highest share at 27.4%, while only 22.6% of older households live in homes built after 2000.
This trend heavily impacts home remodeling and maintenance. Rather than selling and moving, many seniors prefer “aging in place.” Older homes require continuous maintenance for roofs, plumbing, electrical, and HVAC systems. As seniors age, the need for modifications like bathroom safety rails, non-slip flooring, and step-free entryways also increases.
Data shows that 55-plus homeowners tend to stay in their homes for extended periods. About 29% have lived in their current residence for 30 years or more, and 23% have lived there for 20 to 29 years. Combined, more than half of older homeowners have lived in their homes for at least two decades.
Housing values lean lower as age increases. About 24.0% of homeowners aged 55 to 64 reported home values under $200,000, compared to 29.9% for those 85 and older. Meanwhile, homes valued at $500,000 or more generally decrease with age, dropping from 33.2% for ages 55–64 to 26.6% for those 85 and older. Nevertheless, because older adults are far more likely to have paid off their mortgages, they still hold substantial net housing wealth.
Rising Housing Cost Burdens for Seniors
Despite significant home equity, declining incomes present a separate housing cost burden. Roughly 75% of households headed by someone 55 or older spend less than 30% of their income on housing. However, 12.8% spend 30% to 49.9%, and about 12% spend half or more of their income on housing costs.
This severe housing cost burden—spending 50% or more of income on housing—escalates with age. It rises from 9.6% for households aged 55–64 to 12.3% for ages 65–74, 14.3% for ages 75–84, and 18.0% for adults 85 and older. This means nearly 1 in 5 households aged 85 and older devotes half their income to housing expenses, driven largely by declining median incomes, which drop from $105,700 for ages 55–64 down to $45,800 for those 85 and older.
