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38 HOW BEST TO "AGE IN PLACE" Several recent surveys have found that Americans prefer to age in place, but that may also come with some trade-offs. A study by the Urban Institute tracks some of the ways to help seniors age in place. e Urban Institute states that according to the 2017 American Community Survey, more than 40% of seniors (ages 55-75) and 38% of seniors older than 75 live in a three-bedroom house, which is a possible mismatch between the size/maintenance requirements for the home and the needs of the senior. Instead, the report states people should value certain aspects of a home, such as affordability, access to medical facilities, social programs, local transportation, and proximity to family and friends. Another issue to consider is that many seniors do not have enough savings to pay for their living expenses in retirement, and more seniors are relying on mortgages. e report states that 41% of senior homeowners older than 65 years have a mortgage, compared to just 21% in 1989. Mortgage balances are also higher, increasing to $72,000 from $17,000 during that same period for that same age group. Research has found that 3 million American older than 65 are treated annually for falls, requiring 800,000 hospitalizations. e hospitalization costs about $33,000 per stay, for a total annual cost of around $55 billion. e report states in-home modifications reduce falls by 50% for seniors over the age of 75, and every $1 invested in modifications returns $1.50 in reduced medical spending. While there are options to monetize home equity to improve retirement finances, the lack of mechanisms is a barrier. e Urban Institute states that high costs, product complexity, and fear of losing their homes or getting scammed are some of the reasons cited as to why they don't participate in the HECM program. e Department of Housing and Urban Development made several changes to the HECM to reduce risk, but they have shrunk the pool of potential borrowers. A report by the National Association of Home Builders (NAHB) found that 53% of buyers in Q1 2019 were actively seeking a home. Seniors were the group the NAHB found most likely to be seeking a home at 56%. Millennials come in at 50%, and baby boomers were the lowest share at 41%. THE DISCONNECT OF BLACK HOMEOWNERSHIP RATES Black Americans own a much smaller number of homes compared to other demographics across the nation's 50 largest metros, according to a new study by LendingTree. e study, which focused on homeownership trends among African-Americans revealed that while Americans who identified as black made up around 15% of the population in each of the metropolitan areas, only 10% of owner-occupied homes were owned by them. LendingTree also found that across the metropolitan areas covered in the study, the average median household income for this demographic was $41,571, over $30,000 below the average household income recorded for white Americans in these cities. is was especially important, the study said, "because lenders evaluate a potential borrower's income, and this can pose challenges when it comes time to qualify for a mortgage." e study found that Memphis, Tennessee's black population was 46.5%. Comparatively, the percentage of black owner-occupied homes was 34.7%. With a median difference of 11.7% between this population and overall owner-occupied homes, Memphis has the lowest percentage of homes owned by African-Americans relative to their total population. New Orleans with a difference of -24.8%; Milwaukee (-9.2%); Baltimore (-9.1%); and Virginia Beach, Virginia (-8.5%) rounded off the five cities that had the lowest homeownership rates among Black Americans relative to their total population. On the other hand, while this demographic accounts for only 2.3% of San Jose, California's population, the study found that the percentage of homes owned by them was the most significant relative to their overall population across the 50 metros in the study. However, LendingTree pointed out, "e percentage of homes owned by black homeowners is nearly 1.5%, which is still a disproportionately small percentage." Concluding from the study, LendingTree said that while the homeownership rates among this population remained low, there were several ways to increase it, "one of them is by raising awareness about the available homebuying programs on both a national and local level." of millennials said they would turn to real estate for a long- term investment. Source: Bankrate, "Survey: Real estate is back as Ameri- cans' favorite long-term investment." STAT INSIGHT 6%

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