Housing
The high cost of housing
Although affordability problems affect both older homeowners and renters, renters are three times more likely than homeowners to have severe housing affordability problems. Affordability problems are highly concentrated among lower income households with few assets.
Approximately 1.7 million older adults with incomes of less than $10,000 and few financial assets spend more than half of their monthly incomes on shelter costs. Nearly three-quarters (71%) of respondents to the Texas Department of Housing and Community Affair's (TDHCA) 2001 Community Needs Survey said the shortage of affordable housing for low-income older adults is a serious problem. Similarly, the Regional Advisory Committees (RACs), formed in 2002 to provide regional information on TDHCA activities, agreed there is a shortage of housing assistance for low-income older adults in the community.
Energy costs further decrease the affordability of housing. Social Security and Supplemental Security Income (SSI) recipients, the majority of whom are older, spend 13 percent and 20 percent of their household budgets on home energy cost, respectively. The use of less efficient systems and appliances contributes to higher energy costs. Some homes owned by older adults are in need of weatherization and energy assistance because the homes tend to be older. Weatherization refers to changes, such as proper insulation, that can be made to a home to reduce energy waste. More than three-quarters (81%) of respondents to TDHCA's 2001 Community Needs Survey expressed a major or moderate need for weatherization of existing homes to increase energy efficiency. RACs ranked energy assistance for older adults as the highest community affairs priority.
Property taxes and homeowners insurance also place a financial burden on older adults. Current state law provides for the freezing of school taxes on the homesteads of older Texans 65 and older. There is no similar provision, however, for other taxing units. Furthermore, recent increases in homeowner's insurance have further disadvantaged older adults.
Updated: November 2, 2007
