OKLAHOMA CITY – Seniors in Oklahoma and across the U.S. on a fixed income are struggling to afford housing and utilities.
A rising number of seniors are impacted by increased housing costs, according to a 2023 report from Harvard University’s Joint Center for Housing Studies.
More than 11 million older adult households were cost burdened in 2021, meaning they spend at least 30% of their income on housing, utilities, taxes and insurance. That’s an increase of 2.4 million from 2011. Close to 50% of those households spend more than 50% of their annual income on housing.
In Oklahoma City, 24.5% of households age 65 and older are cost burdened. For households 80 and older, 35.4% pay at least 30% of their income for housing.
The report shows alarmingly high renter cost burden rates in several metros including Oklahoma City with lower housing costs and lower burdens for homeowners. More than 56% of senior renters were cost burdened in Oklahoma City in 2021.
Melanie Henry, senior associate director of communications and outreach for AARP Oklahoma, said inflation has caused many seniors to sacrifice necessities like prescription drugs, healthcare and adequate food on the table just to keep the lights on or pay their rent or mortgage.
“They’re getting battered because prices everywhere across the board continue to go up. And so, again, they’re having to make very tough choices,” Henry said.
As the U.S. population continues to age, an increasing number of older adults will struggle to afford either the home of their choice or the care they need, according to report findings.
Jennifer Molinsky, project director of the Harvard University Housing and Aging Society Program, said with subsidies for housing and long-term care services scarce, many older adults will “forgo needed care or rely on family and friends for assistance.”
Henry said seniors rely on Social Security to make ends meet. Recipients can expect a 3.2% cost-of-living adjustment increase in 2024, a decrease of 5.5% from 2023 due to a cooling consumer price index.
Although a key federal inflation indicator has declined, the price of home insurance, particularly here in Oklahoma, continues to skyrocket, putting more pressure on seniors with a fixed income. According to the report, property taxes, utilities and insurance fees, which contribute to housing costs, can be challenging for older households.
According to Insurance.com, Oklahomans paid an average of $1,827 for their home insurance premium in 2019. In 2022, the average increased to $3,860, and the latest data shows $5,317 for 2023, the highest rate in the U.S.
The Harvard report found senior homeowners in Oklahoma and other states in the south are less likely to have disaster insurance. With a higher frequency of severe weather, homeowners in these states may not have the ability to recover or preserve their housing equity.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.