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Demographics: Elders in Massachusetts |
Housing in Massachusetts 2000: Characteristics of Householders and Homeowners Aged 65 and Over
Introduction
In its 1999 "report card" on housing for older Americans, the U.S. Department of Housing and Urban Development
identified good quality, affordable housing as one of the primary "pillars on which a secure retirement is built"
(U.S. HUD, 1999:1). Yet many seniors live in homes that are inappropriate for their changing needs, and many face
housing costs that exceed their capacity to pay. These challenges are particularly pronounced in states like
Massachusetts, where much of the housing stock is quite old and where housing costs rank among the highest in the
nation.
In this report, we focus on the housing characteristics of older householders in the Commonwealth of Massachusetts.
The term "householder" refers to the person in each household in whose name the residence is owned or rented,
frequently referred to as the household head. Data are presented for householders who are aged 65 or over.
Figures are generated from data collected in the 2000 Decennial Census of Population and Housing by the U.S.
Bureau of the Census.
To place this in context, Table 1 shows that more than half a million individuals aged 65 or older head a
household in Massachusetts. Most of the remaining seniors (30%) live in the community but are not householders.
These individuals include spouses of the householder, other relatives, or non-relatives of the household head.
Only 7% lives in group quarters, which in this age group are primarily nursing homes. Proportionally, these
figures are very similar to the corresponding distributions for the United States as well as for the city of
Boston. This report focuses on the segment of the older population-the 63% of all Massachusetts seniors-who were
householders in 2000.
Ownership Rates Among Older Householders
The first section of this report provides ownership rates for different subgroups within the senior population.
Householders who live in owned homes frequently have lower housing costs, inasmuch as many older homeowners have
paid off their mortgages. However, maintenance costs may occur at unexpected times and may be very costly (e.g.,
replacing a roof). Moreover, some older homeowners, especially those with mobility problems, may experience
difficulty handling repairs and maintenance on their own. In contrast, older renters avoid maintenance and repair
responsibilities and costs, and may be able to transition more readily to housing that better meets their changing
needs. However, renters generally incur higher routine housing costs such as rent payments. In the Commonwealth of
Massachusetts, 69% (374,000) of the householders who are aged 65 or older live in owned homes, with the other 31%
(168,000) living in rented housing units.
Figure 1 shows that ownership rates decline with age within the senior population. For example, in Massachusetts
as a whole, 74% of the householders aged 65-74 live in owned homes, compared to only 55% of the householders aged
85 and over. The oldest segments of the senior population are more likely to live in rental housing not only in
Massachusetts, but in Boston and the United States as a whole. Ownership rates within each age group are higher
for the U.S., but substantially lower for Boston than in the Commonwealth.
Homeownership is also more common among householders who are married than among unmarried householders. Figure 2
shows that more than 85% of the older householders who are married live in owned homes, compared to fewer than 60%
of their unmarried counterparts. Within the 65-plus population, married couples are younger on average than those
who are unmarried; their combined health and financial resources are also generally better. These characteristics,
along with the tendency among some older individuals to sell their homes upon widowhood, likely account for these
differences.
Ownership rates are substantially lower among racial/ethnic minorities in Massachusetts and are especially low
among older Latinos. More than 70% of the non-Latino White householders own homes, compared to less than 50% of
their non-White counterparts. Only 24% of older Latino householders live in owned homes.
Underlying some of the ownership rate patterns observed up to this point is a strong relationship between ownership
and household income. Among the wealthiest quartile of older householders-those with total household income of
$51,000 or more annually in 1999-nearly 90% live in owned homes. Ownership rates are sharply lower among less
affluent households; among the older households with household incomes of $14,000 or less, the ownership rate was
only 41%.
In sum, the older individual most likely to be a homeowner in Massachusetts is relatively young (65-74 years of age),
white, not Latino, and married, with relatively high income. Those who are among the oldest-old, who are members of
a racial or ethnic minority group, are single, or have fewer financial resources are far less likely to own homes.
Financial Characteristics
An owned home represents a potentially significant resource to older homeowners in Massachusetts and especially those
living in the Boston area. Almost 70% of all older householders in Massachusetts are homeowners, including almost
half of the older householders in the city of Boston. Figure 5 shows that the median value of the homes owned by
householders aged 65 and over in the Commonwealth is $162,500. This median value means that half of the owned homes
were valued at less than $162,500 and half were higher in value. In the city of Boston, the median was even higher,
at $187,500. Moreover, the majority of older homeowners report that they own their homes free and clear, with these
values reflecting considerable wealth. Sixty-three percent of older homeowners in Boston and 72% of their counterparts
throughout Massachusetts report that their homes have no mortgages.
To better understand the housing cost burden experienced among older householders, it is useful to evaluate the cost
of owning or renting a home relative to the household income available. Paying more than 35% of one's household income
for housing is a frequently used indicator of housing cost burden. Among older homeowners, and taking into account the
total amount of household income paid for mortgage and other housing debt payments, tax payments, property insurance
costs, and utility costs, a substantial number of older homeowners in Massachusetts are overburdened in terms of
housing costs. Figure 7 shows that this burden is particularly pronounced among those who are living in homes with a
mortgage. Throughout Massachusetts, 15% of older homeowners who do not have mortgages, but 41% of those who are paying
off mortgages, pay 35% or more of their total household incomes for housing and related costs. Somewhat higher levels
of housing burden are reported for older homeowners in Boston.
Housing costs for older renters are also high. Costs for renters include the amount paid for rent plus utilities. In
both Massachusetts and in Boston, nearly two out of every five older renters report housing costs that equal or
exceed 35% of their total household incomes. These levels are equivalent to the housing burdens reported by older
owners who have mortgages, but are far greater than reported by the majority of older homeowners who own their homes
free and clear.
Non-Financial Characteristics
The physical characteristics of the homes lived in by older householders differ substantially between owners and
renters and are also distinctively different in the city of Boston. Figure 9 shows that virtually all older renters
live in apartment buildings, with much smaller shares living in single-family homes. Massachusetts owners primarily live
in single-family detached housing, but the majority of older owners within the city of Boston live in apartment
buildings.
A large share of the housing occupied by older householders in the Commonwealth is quite old. In Massachusetts as a
whole, two-thirds of the older homeowners live in homes that are at least 40 years old, and nearly 40% live in homes
that are 60 years old or older. More than two-thirds of the older homeowners in Boston live in homes that are at least
60 years old. Insofar as older housing may have fewer amenities and higher costs for repair and upkeep, the age of
housing in Massachusetts (and especially in Boston) may be a particularly challenging aspect of owning a home.
In comparison, the average renter lives in newer housing. Half or more of older renters live in housing build since
1960, and in Massachusetts as a whole, more than 20% of the renters live in housing no more than 20 years old.
Although the condition of this housing is not known, newer housing may have amenities that many older householders
would find desirable (such as elevators in multi-family apartment buildings).
Many older householders in Massachusetts have lived in their current residences for a very long time, especially when
living in an owned home. Most senior homeowners have lived in their current residence for at least 30 years. Among
these long-standing residents, it is likely that attachment to the residence and surrounding neighborhood is quite
high. Renters report shorter durations of residence on average. Although a significant share of older renters reports
moving into their current residence more than 20 years ago, the majority moved into their rental housing within the
previous 10 years. It may be that many older renters owned homes in the past and moved into rental housing fairly
recently, upon loss of a spouse or upon incurring health problems that challenged their ability to keep up with an
owned home. Indeed, many older householders do report having a long-lasting condition that "substantially limits one
or more basic physical activities such as walking, climbing stairs, reaching, lifting, or carrying" (U.S. Bureau of
the Census, questionnaire for the 2000 Census of Population). About one in five older homeowners and more than
one-third of the older renters report having conditions that limit their physical activities.
Enlarge The Above Figure
Conclusion
Housing represents a key resource for many seniors in Massachusetts. Large shares of the population aged 65 and over
own their homes, although homeownership is far more prevalent among those who are in their 60s and early 70s, those
who are white, who are not Latino, who are married, and those with higher incomes. Among the substantial segment of
older homeowners with paid-off mortgages, homes represent a significance source of wealth that may be drawn on for
future income needs. However, some older homeowners, especially those who are still paying mortgages, experience high
current relative costs for housing, with many experiencing very heavy cost burdens. Although we have no information
on the physical condition of the owned homes, many are quite old and may expose the owner to substantial additional
costs for upkeep and repair. Moreover, because many older homeowners report limitations in their physical activities,
some may be unable to perform needed maintenance themselves.
In comparison, renters have fewer economic resources than their homeowner counterparts, and they experience far
higher cost burdens on average. Four out of ten older renters are paying at least 35% of their total incomes for
housing costs (rent and utilities). Because many older renters report few financial resources to begin with, high
housing cost burdens represent a substantial source of disadvantage. This disadvantage is disproportionately
concentrated among the oldest-old, the racial and ethnic minority populations, single individuals, and those reporting
limitations in their physical activities, all of whom have higher risks of renting a home.
Good quality, affordable housing forms a central component of quality of life. Most seniors in Massachusetts are
"aging in place" in the community, often in homes and neighborhoods in which they have lived for many years.
Information presented in this report identifies significant disparities in the extent to which subgroups within
the older population have access to affordable housing and, perhaps, in their ability to continue aging in place.
Resources and support directed toward reducing the housing cost burden on seniors, and facilitating their ability
to maintain their homes, would be beneficial. Improving the supply of affordable and accessible rental housing is
also desirable.
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