A growing trend sees older Americans seeking younger roommates to help manage rising housing expenses, as detailed in a recent WBUR podcast by Boston’s NPR affiliate.
Jennifer Molinsky, director of the Housing an Aging Society Program at Harvard University’s Joint Center for Housing Studies (JCHS), noted an increase in older adults opting for cohabitation arrangements. “Currently, just under a million older adults are living with unrelated individuals, making up less than 2% of the senior population,” Molinsky said. “Around half of these are older adults living with other seniors, 38% with younger people, and the rest in various other living situations.”
This trend has doubled since 2006, reflecting the growing older population and rising housing costs. “Housing costs are climbing across all age and income groups, pushing even middle-income individuals to struggle with housing payments,” Molinsky explained. “As the leading edge of baby boomers approaches 80, the demand for more affordable living arrangements is increasing.”
The U.S. population is aging rapidly, with the 80-and-over demographic expected to double in the next two decades. This shift highlights the challenges seniors face, such as social isolation and the need for additional help at home. Molinsky emphasized, “These factors are making cohabitation an appealing option for many.”
Out of 56 million older adults in the U.S., about 15 million live alone, often in homes too large for their needs. “Over 11 million of these households have homes with two or more bedrooms, presenting a significant opportunity for shared living arrangements,” she noted. “Most seniors reside in single-family homes with more than one bedroom.”
The reverse mortgage industry is also engaging with this trend. In 2018, Finance of America (FOA) partnered with senior homesharing platform Silvernest, aligning with a rebranding effort to address seniors’ housing and cohabitation needs. “This market opportunity helps older homeowners utilize their home’s value to achieve financial goals, whether through tapping home equity or generating income by home sharing,” said FOA CEO Graham Fleming during a 2023 earnings call.
