Buying a Home to Age-In-Place: A Guide

Reviewed by: Molli Grossman, PhD

When you or a loved one is nearing retirement, you may be eager to do things you haven’t had time to do, such as traveling or taking up a new hobby. You may also be trying to decide where you want to spend your golden years. If you’re like 77% of adults aged 50 or older, you’d prefer to remain in your home and age in place for the long term. 

Staying in a familiar setting is crucial to many seniors, but aging in place isn’t always easy when a home isn’t designed for senior living. However, this doesn’t mean you have to go the institutional route. You can still retain your independence while aging in place in a safe environment equipped for your changing needs. While you could adapt your current home to make it more aging-friendly, remodeling can be difficult and expensive. Instead, consider buying a home already adapted for safety and comfort as you grow older in a senior-friendly neighborhood.

By 2030, all baby boomers will be aged 65 or older, affectionately dubbed the “Silver Tsunami.” Per the U.S. Census Bureau, a projected one in every five Americans will be of retirement age and potentially seeking their Sunset Homes.

If you’re looking for the ideal residence to age in place, this guide covers what you can look for in a home you plan to spend the rest of your life in and the different types of homes that might be available. This guide also covers tips on hiring experts to help with the buying and moving process and options for paying for a retirement home.

When contemplating aging in place, you must also consider the ideal location. Do you prefer a rural or urban environment? Do you want an apartment, condo, or house? They all have pros and cons to think about.

Rural areas have become increasingly popular for the quieter, slower pace of life they offer. However, aging in place in rural communities often brings unique challenges, with the most significant drawback being the lack of vital services. Conversely, urban areas provide numerous amenities that help seniors retain their independence. However, those who grew up in rural communities may not enjoy the pace of big-city life.

Another consideration is your preferred type of residence. Apartments tend to have less maintenance than a house, but you may prefer the privacy you get living in your own home.

While the home you choose for aging in place is essential, you must also consider the area and what it offers older adults. A few crucial things to consider about the environment include:

• Walkable, well-lit neighborhoods are essential for exercise or visiting nearby amenities.
• Readily available, safe public transportation is critical if driving becomes more difficult.
• Safe neighborhoods with low crime rates encourage physical activity and socializing with neighbors.
• Accessible amenities such as restaurants, stores, banks and other essential services within easy walking distance help support continued independence.
• Social opportunities are crucial for cognitive, mental and physical health, so cultural, religious or entertainment venues should be nearby.
• Accessible health care with adequate hospitals, primary care doctors and specialists ensures seniors get the care they need to remain healthy.
• Plentiful support services such as meals on wheels, home health care, adult day care and other caregiving support can become important.

The best environment for aging in place depends on your personal situation. Everyone has unique needs to ensure their ongoing comfort, safety and happiness. Ask yourself what you need in a community or neighborhood to make aging in place easier. To get started, consider the following questions:

• Are the sidewalks wide, level and uncracked with an easy grade throughout the neighborhood to encourage walking?
• Can you visit a neighbor without driving your car?
• Does the area offer easy access to public transportation?
• How close is the nearest grocery store, pharmacy and other business that sells everyday items?
• What are the nearby hospitals like and how close are they?
• Will you have reasonable access to senior organizations, volunteer opportunities and various social activities?
• Is the neighborhood close to family and friends?
• Is the home near an airport that makes it easy for you to visit family and friends who are not local?
• Is the neighborhood safe, meaning would you feel comfortable being out at night in the area?
• Does the area offer weather services such as debris removal and snow plowing?
• Does the home require you to climb exterior stairs or have a long walk to your car?

Buying a home when you’re a senior differs from buying your first home as a young adult. You must ensure the home addresses your unique needs so you can age in place safely. Working with professionals experienced in the senior housing market can help you stay on track and find your forever home.

It’s essential to have your new home inspected by someone who knows what to look for when it comes to common safety issues that impact seniors. The U.S. Consumer Product Safety Commission estimates that Americans aged 65 or older comprise 71% of consumer product-related deaths each year. Even in nonfatal accidents, millions of older adults seek emergency room care for injuries caused by hidden hazards in the home, more than any other age group. Many injuries due to falls, fires and other hazards could be avoided.

Senior home safety inspectors help seniors safely age in place by pointing out hazards that should be corrected. They look for issues such as: 

• Trip and fall hazards
• Defective stairs and railings
• Plumbing leaks
• Inadequate ventilation
• Electrical issues
• Furnace and chimney dangers
• Broken smoke alarms or carbon monoxide detectors

To buy the right home that will allow you to age in place safely, consider working with a real estate professional qualified to work with seniors. Look for a REALTOR® with the Seniors Real Estate Specialist® (SRES) designation. These real estate agents understand current market trends and other factors that impact homebuyers aged 50 and older. An SRES also knows all about aging-in-place home modifications and the vast array of senior housing options. Search for an SRES in your area. 

The National Association of Senior and Specialty Move Managers® can help you find a Senior Move Manager to make the transition smoother. NASMM Senior Move Managers® specialize in assisting older adults and their families with the physical and emotional aspects of moving and aging in place. Although services may vary, most Senior Move Managers® assist you with some or all of the following:

• Developing an overall moving and/or aging-in-place plan
• Organizing, sorting and downsizing belongings
• Arranging for the profitable disposal of unwanted belongings
• Creating customized floor plans
• Interviewing, scheduling and overseeing movers
• Professional packing to ensure belongings arrive safely
• Arranging shipments and storage of belongings
• Unpacking belongings and disposing of packing materials
• Setting up the new home
• Assisting with the selection of a realtor
• Helping prepare the former home to be sold
• Completing related services, such as cleaning, waste removal and senior escorting

These services can help you achieve your goal of remaining in your home while improving your quality of life. 

When buying a home in an age-restricted community, housing costs aren’t covered by Medicare, Medicaid or long-term care insurance. You must pay for the home out-of-pocket. Many seniors use the money from selling their former house to pay for a home in a retirement community or as a down payment. If you need financing, you may qualify for traditional home mortgages based on your income, assets, debt-to-income ratio, credit history and credit score.

Mortgage lenders look at many numbers to decide whether a borrower is qualified, but age isn’t one of them. The Equal Credit Opportunity Act makes it unlawful to discriminate against a credit applicant because of age. Some home financing options that might be available to you include the following:

• Conventional Loans: Issued by private lenders, not backed by government entities and require 20% down to avoid paying private mortgage insurance
• Home Equity Loans: Lump-sum loan based on having at least 20% equity in your current home, usually with fixed rates and fixed monthly payments for terms of 5 to 30 years
• Home Equity Line of Credit: A variable-rate loan that works like a credit card to draw on funds as needed, with a set number of years to draw on the funds, then a set time to repay the loan
• Fannie Mae & Freddie Mac Senior Home Buying Programs: Takes advantage of IRAs, 401(k)s and other retirement income to help secure the loan when borrowers no longer have a regular income, if they have sufficient income for the next 3 years
• Home Equity Conversion Mortgage: Provide a lump sum based on the equity in your home, but someone on the loan must continue living in the house

According to the National Council on Aging, over 15 million Americans aged 65 and older live at or below the federal poverty level. The U.S. Bureau of Labor Statistics indicates that adults age 55 or older use 33% of their annual budget on housing-related expenses. For seniors with limited incomes, HUD created several programs to help, including public housing, multifamily subsidized housing and housing vouchers. Some senior apartment complexes allow residents to utilize these programs to help cover their rent.

Retirement home costs vary based on size, location, amenities and numerous other factors. However, living in a 55-plus planned community should cost about the same as purchasing a house or apartment in any other planned community. Many retirement communities have buy-in fees. Retirement communities may also have monthly fees similar to an HOA to cover certain services and amenities, such as senior-specific amenities, lawn care and/or snow removal.

The notable difference between continuing care retirement communities and traditional retirement communities is that CCRCs offer health care services, a potentially critical aspect as seniors age in place. CCRCs include a broad range of services and continuum of care, which come at a price. 

The average entry fee for CCRCs is around $402,000, but entry fees range from $40,000 to over $2 million, according to the National Investment Center for Seniors Housing & Care (NIC), which tracks costs at around 1,100 CCRCs in 99 major U.S. markets. Upon move-in, you pay monthly maintenance or service fees. However, some CCRCs operate on a rental model without any upfront fees. According to NIC, the average monthly charge for either CCRC model was $3,555 during the third quarter of 2021. Rates typically increase by about 2% annually.

According to the Orange County, NC Senior Housing Guide 2021, adults aged 55 or older could rent senior apartments without services for $986 for a one-bedroom or $1,181 for a two-bedroom based on income at one complex. Another complex charged $400 to $685 for a one-bedroom and $460 to $800 for a two-bedroom based on eligibility for a housing voucher. Older adults in Orange County also had access to senior apartments with services and all-inclusive rental fees of $2,595 for a studio apartment, $3,095 for a one-bedroom and $4,495 for a two-bedroom.

The following list of retirement communities lets you compare your options and determine which provides the best options for buying a home for aging in place. While this list isn’t exhaustive, it gives you an excellent starting place. Each community’s offerings can change over time, so always contact a local real estate agent to discuss current options available in your area and how to proceed in the buying process.