Senior Housing Wealth Reaches a Record: $7.14 Trillion

Senior Housing Wealth Reaches a Record: $7.14 Trillion

The National Reverse Mortgage Lenders Association is reporting that homeowners 62 and older saw their housing wealth grow by 2.7 percent or $104 billion in the first quarter. That brings this demographic’s housing wealth to a record $7.14 trillion from Q4 2018, the National Reverse Mortgage Lenders Association reported in its quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.

The increase in senior homeowners’ wealth was mainly driven by an estimated 2.4 percent or $110 billion increase in senior home values, including an estimated increase of 0.8 percent in the senior home-owning population, offset by a 1.1 percent or $6.5 billion increase of senior-held mortgage debt.

Although this is welcome news for the reverse mortgage industry, it’s also of importance for real estate professionals, many of whom are involved in helping seniors downsize.

It’s been a frequent observation that there’s a mismatch of housing inventory, with large, luxury homes languishing on the market, while starter homes get snapped up by first-time homebuyers, or increasingly, investors. Zillow is reporting that 46.7% of all homes available for sale nationwide are in the “top tier”; more than a fifth (22.3%) of available inventory was priced in the bottom third of all homes.

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After earning her bachelor’s degree in journalism at the University of Central Florida, Tracey set out in the real world at Florida Realtors in 1994 as a communication assistant, working her way up to editor in chief of Florida Realtor magazine. In 2004, she left the association to start her freelance writing and editing business. One of her first clients was REAL Trends, and she started working for the organization in 2005. In 2014, Tracey was promoted to editor in chief of publications for REAL Trends. She handles the writing and editing of all REAL Trends publications and marketing materials, including LORE Magazine, the REAL Trends newsletter and the blog. She is also the primary podcast interviewer where she conducts interviews with top real estate industry leaders and affiliated industry leaders. Tracey is married with two children.

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