In the 1960s, retirement communities that were specifically designed for older adults began to emerge. These were designed to address the needs of individuals aged 55 and older, while also providing them with an opportunity to maintain some level of independence. Since these communities lacked established regulations initially, some inadequacies were not being addressed. Fortunately, important regulations were implemented in the 70s and 80s. Though these communities were incredibly popular for decades, things have started to change. Here’s what you need to know.
Why Older Adults Are Stepping Away
According to the experts, a combination of factors may be convincing older adults to look for alternatives to age-restricted communities. One issue is the rising costs that come with living there. As these communities became regulated, many of them designated a homeowners’ association (HOA) to handle the compliance. Over time, this led to increasing HOA fees for maintenance.
Additionally, these retirement communities for older adults pride themselves on offering amenities that would appeal to that demographic. These can include security, fitness clubs, pools, salons, and exercise courts. The cost of maintaining these facilities is increasing, so the residents have to deal with that as well. Given that many older adults are on a fixed income, the last thing they need is for their cost of living to get more expensive. Some statistics show that living in a retirement community can be as high as $4,000 per month.
The cost of repairs on the home is another issue. While some retirement communities offer home repairs and maintenance as a part of the package, quite a few don’t. As the residents in those communities age, it becomes harder for them to do small repairs on their own, so they have to hire others to do them. Unfortunately, that becomes another expense they can’t afford. Depending on the type of repairs, it can also cause issues with the HOA that needs to maintain a certain standard.
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Another factor that can influence the move from age-restricted retirement communities is the changing health needs of older adults. These communities usually have amenities that are focused on encouraging social interactions, physical activities, and a level of independence. However, some older adults have health issues that need the care and attention of skilled healthcare personnel. In that case, they would have to hire a caregiver.
While some older adults can ease some of the cost of a permanent caregiver by asking their children for help, that can be more difficult with age-restricted communities. Some of them are located in areas that are too far from the residents’ families. Additionally, these communities have to limit how many people under a certain age live there.
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For example, someone under the age of 45 may live in a community that is designed for 55+ residents if they’re retired and married to a resident who is over 55. These kinds of limitations can make life difficult for those who would like to invite their children to live with them, as they couldn’t bring their families into the community.
There is also some concern that the current communities don’t meet the needs of older adults now. Some people in their 50s and 60s are highly active. They’re more interested in going out, building new businesses, and meeting people who live a similar lifestyle. Many of them are likely to view the rules of retirement communities as being too restrictive.
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Finally, the resale value of homes in an age-restricted community is generally low nowadays. The market is saturated, and the community’s target demographic is looking for alternatives. As a result, those who are selling their houses may end up suffering a loss.
5 Great Alternatives to 55+ Retirement Communities
The good news is that you don’t have to live in a retirement community just because you’re older. Here are five options to explore.
1. An Affordable City
If you’re not tied to your current location, you can always move somewhere else that’s more affordable. People who like the security of a gated community can still find one that isn’t as restrictive as one that’s designed strictly for older adults. While it can take some research to find cities that are affordable and friendly to an aging population, it’s not impossible. Some of the areas that might work include Akron, Ohio, and Albuquerque, New Mexico, where the monthly expenditure is about $1,700.
2. Low-Income Senior Apartments
These are a great, affordable alternative to retirement communities because they are designed with older adults in mind. The cost of rent is generally subsidized by different government programs and non-profit organizations. How much you pay can be calculated based on what your adjusted gross income (AGI) is, but it is generally limited to a maximum of 30%. For example, if your AGI is $1,000, your rent can’t be higher than $300.
The wonderful thing about these apartments or condos is that they still have the accessibility features that you need. Some of these include elevators, shower bars, and wheelchair ramps. You can often find low-income apartments by searching online or enquiring from non-profit organizations like Volunteers of America, Good Samaritan Society, Mercy Housing, and HumanGood.
3. Cooperative Housing for Seniors
While this option is usually not as affordable as low-income housing, it’s still not as expensive as a retirement community. It also offers the interesting premise of selling your shares in the company that owns the building. Purchasing shares then allows you to lease a housing unit and use common areas such as the kitchens, laundry, outdoor spaces, and fitness rooms. You’ll pay a monthly fee that covers utilities and maintenance, among other costs.
Unlike other types of communities, members have a say in how things are run. Additionally, the value of your shares can increase by a percentage or two annually. This might not be a lot of money, but it means you won’t experience a loss if you decide to sell and move out of the co-op. You can find options by searching for senior co-ops online. A few areas you may find openings include Colorado, Arkansas, Florida, Iowa, Kansas, and Minnesota.
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4. HUD Housing Programs
There are two low-income options offered by the Department of Housing and Urban Development (HUD). The first involves Section 8 Housing Choice vouchers. Though it’s not specifically for older adults, you can use these vouchers to afford the rent for an apartment, condo, townhouse, or single-family house that meets your needs. However, the landlord must agree to this arrangement as the Local Public Housing Agencies (PHA) will pay them directly. You’ll then pay the difference. While there’s a waiting list, immediate housing options may be available for older adults who don’t currently have housing.
The second option is Section 202 Supportive Housing for the Elderly. If you’re a low-income adult who’s over 62, you may qualify for housing in these multifamily properties. They encourage independence but still offer supportive services such as cleaning, cooking, and transportation. To qualify for this, you need to meet the necessary age and income criteria.
5. Adult Family Housing
These are residential homes where up to six older adults live together. You’ll have your own room, but everything else is a shared space. The home is managed by paid supervisors and incorporates counselors, nurses, dietitians, and social workers. These additions make them excellent choices for people who need low-level healthcare assistance.
Adult family housing is usually approved, licensed, and monitored by the local Department of Family Services, so that’s the best place to start your search.
Age-restricted communities used to be the go-to for older adults who were ready to retire. However, the rising costs and how people want to live have changed that. If you’re looking for options that suit your needs without breaking the bank, this list is a great place to start.
