Aging in place will be big business for builders

VaselineSeptember 9, 2024

0 3 minutes read

Aging in place will be big business for builders

To help you understand what’s happening in the pensions and construction sectors, our highly experienced Kiplinger Letter team will keep you up to date with the latest developments and forecasts (Get a free edition of the Kiplinger Letter or subscribe). You’ll get all the latest news by subscribing first, but we’ll publish many (but not all) of the forecasts a few days later online. Here is the latest…

A major growing industry with years of experience: Allowing seniors to stay at home longer and not rely on crowded and expensive nursing homes. Given the country’s aging demographic, builders and contractors will be busy meeting this need.

Not surprisingly, staying at home is the desire of most people as they age. Older people generally value familiar surroundings and do better health-wise if they can age in place at home.

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There are also strong financial incentives. The cost of nursing home care is rising: $9,000 a month, on average. In big cities, where everything costs more, this figure is $13,000. Persistent understaffing is a major cost driver. Staying in an assisted living facility costs an average of $5,500 per month, or $7,000 in high-cost metros. The cost of caring for seniors in their own homes varies, with a typical range of $3,500 to $6,000 per month. Clearly, saving money and being where you want to be is a win-win. But it often involves a lot of renovations to a home to make it safer and easier for seniors to age there, which is good for skilled contractors.

Some of the common home updates are familiar items: adding grab bars, wheelchair ramps, widening entryways, adding downstairs bathrooms if needed, etc. Others might be less obvious: raising electrical outlets and lowering switches to make them more accessible, especially for people in wheelchairs. Switch flooring to softer cushion-falling options like bamboo over cork. Adding extendable shelves and lowering worktops in the kitchen to make work surfaces more accessible.

Then there are the big changes: The addition of a master bedroom on the first floor. Replacing bathtubs with lipless showers. Installation of wheelchair lifts on stairs. Building a wheelchair ramp leading to the front entrance of the house. Check out our guide to making your home safer as you age for more ideas.

Builders are increasingly thinking about meeting the needs of the elderly in their place. More real estate agents are reporting younger clients who say they want a “first home,” a place they can live in for the rest of their lives. An example of forward thinking: Some builders stack closets on the upper and lower floors to create space for a future elevator if needed. Interested builders and contractors can be certified as an Aging in Place Specialist by the National Association of Home Builders (NAHB).

Paying for these improvements can be a challenge, of course. Seniors who are strapped for cash but have plenty of equity might consider a reverse mortgage that doesn’t have to be paid off until the home is sold. But read the fine print first to make sure you understand all the terms and conditions before going that route.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on economic and business trends, as well as what to expect from Washington, to help you understand what’s ahead to get the most out of your investments and your money. Subscribe to the Kiplinger Letter.

VaselineSeptember 9, 2024

0 3 minutes read

Vaseline

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