The senior living industry is facing a critical moment as it strives to meet the needs of the “forgotten middle” market. Older adults in this income bracket, with incomes ranging from $26,000 to $103,000, are struggling to access senior housing due to affordability issues. Changes to legislation and policy are urgently needed to address this crisis, according to experts at a recent webinar hosted by NORC at the University of Chicago.
NORC research has highlighted the challenges faced by millions of older adults who cannot afford current senior housing prices. This group, part of the “forgotten middle,” could grow to almost 16 million by 2033. Additionally, 11.5 million older adults would face financial difficulties if they experienced a health event that impacted their ability to afford senior housing.
The issue is further complicated by housing shortages, rising healthcare costs, and workforce challenges. Dianne Munevar, VP of healthcare strategy at NORC, emphasized the need for innovative solutions that involve collaboration between public and private sectors. The middle market faces a policy crisis with no easy answers.
By 2033, the “forgotten middle” is projected to increase in size, with a growing number of health needs. Many of these individuals will have chronic health conditions and cognitive impairments, making it increasingly difficult to afford private assisted living without depleting their assets.
NORC is also focusing on addressing disparities faced by Black and Hispanic older adults, who are more likely to struggle financially in their later years. Policy solutions such as expanding Medicaid eligibility, enhancing home modification programs, and increasing funding for community-based services are being explored to improve access to care for these vulnerable populations.
While the challenges are significant, Munevar believes that with the right policy interventions, the issues facing the “forgotten middle” can be resolved. NORC is committed to developing solutions that will ensure older adults in this market have access to the care and support they need to age with dignity and security.
