While the majority of older adults will need care and assistance at some point in their lives, services for tasks such as dressing and bathing are affordable to only a very limited number of older adults, particularly after housing and other living costs are paid. The Joint Center for Housing Studies at Harvard (JCHS) released a report examining the “dual burden” of older adults having to pay for housing and care costs at once.
This paper, titled “Older Adults Struggle to Meet the Dual Burden of Housing and Care,” used 2021 Genworth cost of care data, the American Community Survey, and the Elder IndexTM, a regional cost-of-living estimate specific to older adults’ budgets compiled by UMass-Boston, to construct a metro-level estimate of the total cost for housing, other basic living expenses, and one daily visit from a paid home health aide.
JCHS analysis found that only one quarter of the nearly 10 million households in our sample had enough income to pay for a daily care visit on top of housing and basic costs of living. Partner households were better positioned with 43 percent able to cover a daily visit (serving both partners) compared to 19 percent of those living alone. Tenure also mattered: less than 9 percent of renters were able to afford housing, basic expenses, and daily care compared to 30 percent of owners.
The paper also found that Black and Hispanic households were least likely to afford care, with only 14 and 11 percent respectively able to fund LTC services out of income alone, compared to 26 percent of their white counterparts. And just 19 percent of households with a resident who struggled with mobility, self-care, and/or independent living were able to afford a daily care visit, though they were far more likely to need long-term care services.