01-22-08 1B Market Study - Laserfiche WebLink

Home Browse Search

SENIOR HOUSING ANALYSIS Older Adult and Senior Household Iucomes Table 27 shows incomes for older adult and senior households in the Market Area in 2007 and 2012, based on estimates by Claritas Inc. It is important to note that the data does not account for the asset base of senior households, nor supplemental income that a senior household could gain from the proceeds of a sale of a home or contributions from family members. In 2000, the homeownership rate among senior households was 91 % for 55-64 year olds. The average single- family home in the Arden Hills Market Area in 2007 sold for $259,000. Seniors can utilize these home sale proceeds, along with incomes, to afford market-rate senior housing. The data in Table 27 helps determine the demand for senior housing based on the size of the market at specific price levels. This data is incorporated into demand calculations, which are presented in a following section. It is generally understood that the frailer the senior, the greater the proportion of their income will be spent on housing and services. Studies have shown that seniors are often willing to pay 40% to 50% of their incomes for market rate senior housing with little or no services, while in- come allocations of up to 65% are typical in a congregate setting and 80% to 90% for assisted living. The following are key points from Table 27. ~ In 2007 the median income for households between the ages of 65-74 was $57,630 and $47,664 among age 75+ households. The higher incomes for younger senior households (65- 74) compared to older seniors (75+) is primarily due to the fact that a higher proportion of younger seniors are married and are more likely to have two pensions or higher Social Secu- rity benefits; and others continue to work. ~ The growth in senior households will translate to increases in every income level. However, seniors with higher incomes are projected to growth at a faster rate than those with lower in- comes (less than $25,000). Members of income groups below $15,000 are usually excluded from market rate housing. ~ The target market for independent senior housing is generally senior households age 65+ with incomes of at least $30,000. Older adults, ages 55- 64, may also choose age-restricted housing, but overall, they usually account for only a small portion of the demand within any given market area. ~ As of2007, we estimate 6,548 senior households (ages 65+) in the Arden Hills Market Area with incomes of at least $30,000, accounting for nearly 60% of all senior households. In ad- dition, there was an estimated 7,263 households age 55-64 in the Arden Hills Market Area with incomes of at least $30,000. MAXFIELD RESEARCH INC. 65