The costs of aging in place

Summary

Marketplace Morning Report: The Costs of Aging in Place
Episode Release Date: July 1, 2025
Host: David Brancaccio

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Introduction: The Desire to Stay Home

In this episode of the Marketplace Morning Report, host David Brancaccio delves into the increasingly pressing issue of aging in place. As surveys consistently reveal that a majority of seniors prefer to remain in their current homes, the episode explores the financial and logistical challenges that make this aspiration difficult for many.

Personal Story: Anthony's Struggle to Stay Home

The report opens with the story of Anthony, a 77-year-old resident of the Twin Cities area, who has owned his home for 29 years. Despite facing physical disabilities and the threat of losing his home during the pandemic, Anthony's determination and support from Mid Minnesota Legal Aid enabled him to remain in his residence.

• Anthony on Aging in Place:
  “Like a lot of seniors, we want to stay in our own homes.”
  (05:38)

Anthony, a former law enforcement officer and security guard, relies on Social Security, a small pension, and Medicare to make ends meet. He receives assistance through a state-run care program, which, while helpful, leaves him financially strained.

• Anthony on Financial Strain:
  “It is tight and somewhat stressful, but the program that I am on, it helps me a great deal.”
  (06:52)

Financial Challenges: The Mortgage Dilemma

The episode highlights a significant issue faced by older homeowners: mortgage debt. According to Laurie Troinsky, Senior Director of Finance and Employment at AARP, many seniors carry substantial mortgage debt into their retirement years, often without having built substantial equity.

• Laurie Troinsky on Mortgage Debt:
  “It takes a long time to accumulate equity if you finance over a 30-year period and if you refinance at some point and also roll into a 30-year loan, you're just perpetuating that debt.”
  (08:11)

Additionally, the costs associated with homeownership—such as property taxes, insurance premiums, and maintenance expenses—continue to rise, further straining the finances of older homeowners.

Expert Insights: The Broader Financial Landscape

The discussion broadens with insights from Laurie Troinsky, who stresses the multi-faceted nature of debt among seniors. Many older homeowners carry not just mortgage debt but several other types as well, limiting their financial flexibility.

• Laurie Troinsky on Overall Debt:
  “Most people carry several types of debt.”
  (08:33)

This accumulation of debt restricts the ability of seniors to handle unexpected expenses, access long-term care, or cope with income drops, thereby putting their aspiration to age in place at risk.

Systemic Issues: Navigating Government Programs

Seniors like Anthony often navigate a complex array of government programs to sustain their ability to live independently. The episode underscores how navigating these programs can be daunting and time-consuming, as evidenced by Anthony's year-long effort to secure the necessary support to stay home.

Conclusion: The Pressing Need for Solutions

As more homeowners enter their retirement years with significant debt and rising homeownership costs, the feasibility of aging in place is increasingly compromised. The episode calls attention to the urgent need for policy interventions and support systems that can alleviate the financial burdens on older adults, ensuring that their desire to remain in their homes does not become an unattainable dream.

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Notable Quotes:

• “Like a lot of seniors, we want to stay in our own homes.” – Anthony (05:38)
• “It is tight and somewhat stressful, but the program that I am on, it helps me a great deal.” – Anthony (06:52)
• “It takes a long time to accumulate equity if you finance over a 30-year period and if you refinance at some point and also roll into a 30-year loan, you're just perpetuating that debt.” – Laurie Troinsky (08:11)
• “Most people carry several types of debt.” – Laurie Troinsky (08:33)

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This comprehensive examination by Marketplace sheds light on the financial hurdles that hinder seniors from aging in place, offering both personal narratives and expert analysis to underscore the gravity of the issue.

Transcript

[Marketplace Host]

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[David Brancaccio]

This Marketplace podcast is supported by Palo Alto Networks. Enterprises are deploying and experimenting with AI apps and agents, often without the right security in place. Leverage the power of a comprehensive AI platform to secure AI at every step from apps, agents, models and data. Deploy AI bravely with Prisma airs more at Palo Alto networks.com palal pal they haven't gotten to the big Senate vote yet on cutting taxes and cutting programs I'm David Brancaccio in Los Angeles. The Senate is coming off an all nighter with one vote after another on amendments ahead of a big decision on spending and taxing. But before that, is this votarama? Here's an update from Marketplace's Nancy Marshall Genser.

[Nancy Marshall Genser]

Senators are voting on a series of amendments to the massive bill, some aimed at making it less expensive. The Congressional Budget Office has estimated the bill will add more than $3 trillion to the budget deficit over the next decade. Senate Republicans have a very narrow margin for error here. They can only lose three votes. The House already passed its version, but if the Senate makes changes, the House will have to come back into session to approve the Senate version before the legislation can make its way to President Trump's desk. I'm Nancy Marshall Genser for Marketplace.

[David Brancaccio]

Now to an economist who's focused on the way the tax cutting, federal program cutting and debt increasing bill plays out. In the longer term, effects are one thing, but so is the short term, assuming a version of this passes into law. David Kelly is chief global strategist at JP Morgan Funds.

[David Kelly]

I think the biggest thing that people are missing here is that a lot of these tax cuts kick in from the start of this year, not next year. And what that means is we're going to get a bumper income tax refund season early next year. So right now we've got an economy that's slowing down, to be honest. But I think it's going to pick up a lot early next year just because of those income tax refunds and then perhaps begin to slow down again after some of that money's been spent.

[David Brancaccio]

And your big assumption here is that this does get passed somehow in the coming days?

[David Kelly]

Oh, yes, I think so. I mean, I've, I think there's a lot of grumbling about it both ways, but something has to get passed because we have to increase the debt ceiling. And I think from a political perspective, it's just a matter of counting the votes. I think they have the votes and they will, they will get this thing passed.

[David Brancaccio]

All right. David Kelly, Chief Global Strategist, JP Morgan Funds, thank you very much. Now, a countervailing force if such a tax stimulus hits is whatever tariff policy we have later this year. It was a remarkable rebound for stocks in the March to June quarter that just ended. The S&P 500 index went up 10.6%. The Nasdaq went up 17.7%. Despite tariffs and other policy swings, Tesla stock was down 6% in early trading on this Tuesday, with CEO Elon Musk throwing mud at the mega bill in Congress and the President throwing mud back at the federal subsidies. Musk companies get.

[Marketplace Advertiser]

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[Joshua McNichols]

Here in Seattle, we're building the technologies of the future from AI to clean energy.

[Nancy Marshall Genser]

But we're also dealing with some of today's biggest challenges, like the housing crisis and the skyrocketing cost of living.

[Joshua McNichols]

We're here to break it all down for you. I'm Joshua McNichols.

[Nancy Marshall Genser]

And I'm Monica Nicholsburg. Join us on Booming, a weekly podcast from KUOW about the economic forces shaping our lives here in the Pacific Northwest.

[Joshua McNichols]

Listen on the KUOW app or wherever you get your podcasts.

[David Brancaccio]

Surveys consistently show people want to age in their current home. Yet owning a home is expensive, especially if there's still a mortgage. Harvard's Joint center for Housing Studies calculates that more than 1 in 4 homeowners 65 years and older are stretched thicker thin financially. As part of his Seniors in debt project. Here's Marketplace's Chris Farrell.

[Joshua McNichols]

Anthony, age 77, lives in the Twin Cities area. He has owned his home for 29 years.

[Anthony]

Like a lot of seniors, we want to stay in our own homes.

[Joshua McNichols]

He was in law enforcement and a security guard, but Anthony is now physically disabled.

[Anthony]

It just seems better being here than, better than being in a nursing home and you just feel better. That feeling better makes you more healthier.

[Joshua McNichols]

Anthony nearly lost his home during the pandemic. He went in for knee replacement surgery and an assessment was made that he would be better off in a nursing home. Thanks to the combination of Anthony's determination and help from Mid Minnesota legal Aid, another assessment eventually found he could return home safely. Gordon Solow, his legal aid lawyer, says the process took more than a year.

[Anthony]

A big part of it was his hard work and advocacy to get the kind of personal, you know, personal training, physical therapy that he needed so that he could be returned home safely.

[Joshua McNichols]

Anthony lives off Social Security in a small pension. He is on Medicare and he gets the care he needs at home through a state run care program. Money is tight, but he's making ends meet, including paying his mortgage, utilities and and other household expenses.

[Anthony]

It is tight and somewhat stressful, but the program that I am on, it helps me a great deal. I have what you call a personal care attendant that comes in and helps me with medical and helps me out with dinner and so forth.

[Joshua McNichols]

The financial strain faced by disabled older homeowners of modest means is widespread. The common desire among the disabled to age in their home often depends on successfully navigating a complex multitude of government programs. More broadly, making ends meet is hard for increasing numbers of homeowners.

[Laurie Troinsky]

When you look at the overall level of mortgage debt, you're not looking at, oh, this is debt people use to purchase a home. It could be debt for many other purposes that they rolled into a mortgage at a later point in time. So we are seeing a lot of people carrying mortgage debt into their retirement years, more so than ever before.

[Joshua McNichols]

Laurie Troinsky is Senior director, Finance and Employment at aerp. Despite living in their homes for decades, older homeowners who took out classic 30 year mortgages often don't have any equity to tap in their elder years.

[Laurie Troinsky]

It takes a long time to accumulate equity if you finance over a 30 year period and if you refinance at some point and also roll into a 30 year loan, you're just perpetuating that debt.

[Joshua McNichols]

The costs of homeownership are up too, including property taxes, insurance premiums and home maintenance expenses.

[Laurie Troinsky]

I'm concerned about the trend because most people carry a lot more than just mortgage debt. AARP did a survey a couple of years ago and we found most people carry several types of debt.

[Joshua McNichols]

These debt payments limit the financial flexibility of older homeowners. The desire to age in their home is powerful, but debt means they're at risk to an unexpected large expense, the need for long term care, a drop in income, and other potential setbacks. I'm Chris Farrell for Marketplace.

[David Brancaccio]

Our Buy Now, Pay later project is in partnership with Next Avenue, a nonprofit news platform for older adults. Produced by Twin Cities pbs, this is the Marketplace morning report from APM American Public Media.

[Joshua McNichols]

Hey there, it's Ryan, co host of Million Bazillion, a podcast that answers your kids big questions about money. This week we're kicking it old school and taking questions from Million Bazillionaires on this super special show.

[David Brancaccio]

I was wondering how much people in the government like the president make and.

[Marketplace Host]

How do they decide?

[Nancy Marshall Genser]

How do airlines determine the price of a ticket?

[Joshua McNichols]

Where did the penny get its name? Plus, Bridget and I put some old cassette tapes to good use. Listen to Million Bazillion wherever you get your podcast.