Mortgage Research Network Podcast

Welcome to the Mortgage Research Network Podcast. We bring you the latest mortgage and real estate news 3 times a week. The audio is AI generated, but content is fact-checked by me, Tim Lucas, editor of MortgageResearch.com and a former mortgage professional. And with me is Craig Berry, a mortgage originator with 25 years experience. Craig, so here’s something that caught my attention—93% of adults aged 55 and older say their goal is to age in place. That’s almost everyone. But here’s the kicker: if living alone becomes impractical, hiring a caregiver can get expensive and only 21% of seniors actually have long-term care insurance to help make that possible.

That’s a huge gap. It’s like everyone has this ideal scenario in mind, but very few are actually prepared for the reality of what it takes to make it happen.

That's very true. There was a Pew survey of seniors aged 65 and up who live independently that revealed that 60% of them want to stay in their homes and bring in a caregiver if things become unsustainable. But when you look at the costs, it’s clear why that’s easier said than done. Homemaker services, for example, cost an average of $75,504 a year for just 44 hours a week. If you need a home health aide, it’s $77,792 for the same hours. And if you need round-the-clock care? That skyrockets to $297,024 annually.

That’s staggering. I mean, even the “cheaper” options aren’t exactly affordable. Adult day care, which is often used as a break for caregivers, costs $26,000 a year. Assisted living communities average $70,800 annually, and nursing homes? A semi-private room costs $111,325, while a private room is $127,750. Those numbers are just out of reach for so many people.

Exactly. And that’s why income plays such a huge role in shaping people’s preferences. Pew found that upper-income seniors are the most likely to say they’d prefer to move to assisted living—28% of them, compared to 19% of middle-income seniors and just 13% of lower-income ones. For a lot of people, it’s not just about what they want; it’s about what they can afford.

That makes sense. But what about the option of moving in with family? It seems like that would be a more affordable alternative, but it’s not without its own challenges, right?

Right, moving in with an adult child can work, but it’s not as simple as just packing up and moving in. There are emotional and logistical challenges to consider. For example, having clear boundaries is crucial. The Wall Street Journal emphasized this last year, saying that flexible floor plans, privacy, and upfront discussions are key to making multigenerational living work. And then there’s the question of space—some families might need to build an accessory dwelling unit, or ADU, to make it feasible.

Oh, ADUs are interesting. They’re like small homes that can be attached to or detached from the main house. I read that more states and cities are starting to make it easier to build them. The Washington Post reported that 18 states, including Washington, Arkansas, and Maine, have passed laws to encourage ADUs. That could really change the landscape for multigenerational living.

Absolutely. And for seniors who own their homes, funding an ADU could be a way to contribute financially while maintaining some independence. But even with an ADU, the success of multigenerational living depends on the family dynamic. It’s not just about having the space; it’s about having the right mindset and communication.

That’s a great point. And it ties back to the broader issue of planning. Whether it’s aging in place, moving to assisted living, or joining a multigenerational household, none of these options work without preparation. But the reality is, most people don’t plan ahead. Only 21% of seniors have long-term care insurance, and Medicare rarely covers long-term assistance or custodial care like adult day care.

Exactly. Medicare is more focused on medical care, not the kind of ongoing assistance many seniors eventually need. For example, adult day care provides a safe, structured environment where seniors can socialize and stay active, but it’s considered custodial care, so it’s not covered by traditional Medicare plans. That’s a big gap in the system.

It really is. And let’s not forget, some seniors live healthy, active lives right up until something catastrophic happens. But for others, it’s a slow decline—mobility issues, vision problems, cognitive decline. At some point, aging in place just isn’t safe anymore.

And that’s why it’s so important to plan ahead. It’s natural to want to hold on to your independence as long as possible, but there’s a fine line between independence and danger. Acting before things reach a crisis point can make all the difference.

Absolutely. And for those who are still decades away from facing these decisions, now might be the time to consider long-term care insurance. It’s not cheap, but it could save you and your family a lot of heartache—and money—down the line.

So, the takeaway here is clear: whether you’re a senior, a caregiver, or someone just starting to think about the future, planning is key. Know your options, understand the costs, and have those tough conversations sooner rather than later. That's about all the time we have for this topic, but we go into even more detail on the site. For more, search "aging in place vs assisted living" at Mortgage research.com. We'll see you next time on the Mortgage Research Network Podcast.