Downsizing, Financial Planning, Retirement, Trends

Aging in Place

The idea of aging in place seems to be everywhere these days. We boomers like our trends, and aging is place is a popular one right now.

Aging in place refers to staying in our homes as we age, instead of moving to a retirement home or complex, and later avoiding the assisted living and skilled nursing nightmares some of us have seen our parents go through. Partially due to the economic crisis which has eaten into our home equity as well as retirement accounts, the hunker down mentality is more prevalent.

The benefits of aging in place are not having to move, and being around familiar surroundings and friends, preserving as much as we can of our same lifestyle; along with saving the cost of a move, and having to begin paying rent.

Being able to age in place does require some adjustments, though. Chances are the house will have to be adapted so it is easier to use as capabalities change. This is known as universal design, and involves changes to counter heights, floor coverings, door openings, adding grab bars, etc. If there is not a bedroom and bath on the main level, a lift can be considered.

Another change is a need for a support network of friends, family and care givers who can help out with home maintenance, shopping, and transportation. Often children don’t live nearby, or are not available to help with these chores. A notable solution to this is a community based organization in Boston called Beacon Hill Village. It’s an organization of volunteers who help each other meet these needs for a reasonable cost, and also provides a strong sense of community. In fact, there is a similar organization starting in North East Seattle called NEST.

Hanging onto a larger older home can also make sense if you want to share it. It can be as easy as renting out rooms to friends (like the “Golden Girls”) or the house may lend itself  to converting a part of it to an accessory unit, or mother in law apartment. With the slow economy and foreclosures, families are sometimes moving into to the same house, either gown children boomeranging back home, or older parents or grandparents moving in with children.

A big question still is “where will we age in place”? Some people I talk to would never leave their home. Others like the concept of staying home as they age, but can’t see aging in their same house. Many feel their present home is way is too large, or will be too expensive to maintain in the future on a fixed income. Others also feel it is easier to find something else smaller nearby rather than to go through the remodeling process or finding roommates.

No matter where you live in the area, there is a good chance there is a suitable apartment, condo, or one-level home nearby that would work better.

These days, most real estate conversations go to the subject of values, and whether they are going up or down. The answer to that question is, of course, “both”. Some areas and housing types are holding their values pretty well, and others are still declining. Now, homes in desirable areas that are close to transportation and amenities are doing well if priced low enough. The larger homes in the outer areas seem to be harder to sell, and are declining in price far more.

Interestingly, this coincides with what both planners are planning, and builders are building. Our future growth will be smaller homes in existing redeveloped areas. Transportation is a very important factor. In my career, I have noticed that what planners plan and builders build is usually what goes up in value.

So, if you are concerned about values going forward, you may want to factor this in the equation. If you live close in, in a smaller house, aging in place in your present home may make sense, and turn out to be a good investment going forward. On the other hand, if you are thinking of moving, and are in a larger home on an outer area, a move may make more sense.