HOUSING

Housing is an important issue among older adults, as housing costs comprise a significant proportion of household expenses and can cause financial stress for adults about to experience or already experiencing a decline in income. This section of the report discusses housing affordability, homeownership, housing instability, and barriers to obtaining housing in Central Indiana. Key findings include:

• More than half of older adult renters in Central Indiana are housing cost-burdened, paying more than 30 percent of their income towards housing.
• In Central Indiana, while 23 percent of White older adult households (owners and renters) are housing cost-burdened, that rate is 41 percent among Black households.
• The housing cost burden rate for Latinx older adults improved from 36 percent in 2015 to 26 percent in 2021 in Central Indiana.
• Twenty-two percent of Central Indiana’s older adult households rent and the other 78 percent own their home. Among those homeowners, 32 percent have paid off their mortgage.
• Twenty-five percent of Marion County adults experiencing homelessness were over the age of 55, while six percent of those individuals were over the age of 64.
• The number of Marion County residents experiencing homelessness declined by eight percent between 2022 and 2023.

The Burden of Housing Costs

Housing affordability affects the ability of older adults to live stably and age in place across a variety of living quarters. It particularly affects older adults, spanning from those who own their own homes to those who rent or experience housing instability. Because housing and housing-related costs represent a large proportion of the typical household budget, these costs can place a great deal of financial stress on older adult households. See the Financial Stability section of this report to learn more about older adult household expenses.

A household is considered housing cost-burdened when 30 percent or more of its income is spent on housing costs and severely cost-burdened when 50 percent or more of its income is spent on housing costs. ^{1 2} In 2017-2021, 26 percent of older adults in Central Indiana were housing cost-burdened, and 13 percent were severely cost-burdened.^{3 4} As noted in the chart, the rate for older adult renters was nearly triple the rate for older adult homeowners.

In Central Indiana in 2021, half of older adult renters were housing cost-burdened, a decline of five percentage points since 2015. Twenty-eight percent of renters were severely housing cost-burdened, which has not changed significantly since 2015.⁵  While there are few significant differences between renters of different age groups, a smaller proportion of younger-old renters are housing cost-burdened than are middle-old and oldest-old renters (46 percent compared to 55 percent and 65 percent, respectively). Similarly, renters age 85 years and older are more likely to be severely housing cost-burdened (44 percent) than younger-old and middle-old renters (25 percent and 26 percent).⁶  This pattern is consistent with decreases in income and increases in poverty when moving from younger to older age groups, as discussed in the Financial Stability section of this report.

Meanwhile, one in five Central Indiana homeowners age 55 and older was housing cost-burdened in 2021, a 2.2 percent decrease since 2015. Eight percent of older adult homeowners were severely housing cost-burdened in 2021, which did not change significantly from 2015. Younger-old adults were significantly less likely than middle-old adults to be housing cost-burdened (16 percent versus 22 percent). ⁷ Older adults who are housing cost burdened also experienced the financial impact of the COVID-19 pandemic. Those who rely on earned income or the income of others in their households to pay the rent may have faced housing instability in the wake of income loss, which disproportionately impacts households with lower incomes.^8 9

Older adults of color in Central Indiana are disproportionally more likely to be housing cost-burdened. According to 2021 data, Black older adults are significantly more likely to be housing cost-burdened than White older adults.¹⁰ Although the estimated share of Latinx older adults that are burdened by housing costs has fallen by ten percentage points since 2015, their housing cost burden (26 percent) is higher than White older adults (23 percent), although within margin of error.

The cost of housing maintenance also affects the affordability of housing. Older adults in focus groups reported not being able to maintain their homes or properties and may not be able to afford to hire someone to do this maintenance for them. Some feel uncomfortable continually asking children or relatives for help cleaning gutters, mowing lawns, trimming trees, and making other repairs. Finding home and property maintenance businesses that are trustworthy also affects access to these services. Those with Internet access use resources such as the Better Business Bureau to ascertain the trustworthiness of a company. One woman noted that she asks people from church to help her, because if they do a good job at these tasks at church, they will do so at her home.

To help offset housing costs, older adults reported using programs like the Low-Income Energy Assistance Program (LIHEAP).¹¹ It is also a one-time benefit that will not cover the costs of all energy bills, and LIHEAP and similar programs require substantial documentation that some older adults may lack. An average of 11,000 older adults are served by this program annually in Central Indiana.^{12 13} A limited amount of weatherization assistance is available to Central Indiana residents through the state government. Lastly, older adults in focus groups reported using services to make their homes more accessible, which is important to supporting aging in place.

Availability of Affordability, Quality Housing

The Community Assessment Survey for Older Adults (CASOA) identifies the strengths and needs of Indiana adults age 60 and older, including in the Central Indiana region. In 2021, only 30 percent of Central Indiana respondents indicated that the availability of affordable quality housing in their communities was either excellent or good.¹⁴ This is a 10-point decline from 2017, representing respondents’ perceptions of increased housing prices. Indiana also experienced a decline between 2017 and 2021 (42 percent to 38 percent), albeit not as great as Central Indiana’s decline in perceptions of affordable housing.^{15 16}

One means of ensuring a quality supply of affordable housing earmarked for older adults is by using federal and local resources to leverage or directly finance the construction of affordable housing, typically multifamily rental housing. Federal programs related to these are often funded or guaranteed by the U.S. Department of Housing and Urban Development (HUD), along with funding through programs such as the Low-Income Housing Tax Credit (LIHTC) program, the Community Development Block Grant HOME program, bond financing guaranteed by municipalities, states or the federal government.¹⁷

Federally subsidized affordable rental housing for older adults is typically limited to those age 62 and older, and is sometimes also available for people with disabilities, regardless of age. To qualify for an affordable unit, a household must fall at or below a specific income level based on household composition.¹⁸ Central Indiana is home to a total of 6,993 HUD-funded or financed affordable apartment building units.¹⁹ This reflects an increase of 959 units between 2021 and 2023. Many subsidized units are funded through Low-Income Housing Tax Credits, which require affordable rents for a certain period of time. As these requirements expire, the units return to market rate and the number of subsidized units is reduced. Marion County has the largest number of units, 4,855, and the highest concentration of units, at 20.3 units per 1,000 eligible older adults. Hancock County has the fewest number of affordable housing units (194 units), while Hamilton has the least number of units per 1,000 eligible older adults, at 2.6 units.^20 21

Although most older adults in Central Indiana own their homes, renters comprised 23 percent of older adult households in 2017-2021.²² Twenty-two percent of younger-old households live in rental units, compared to 18 percent of middle-old and 29 percent of oldest-old adults. A focus group at a low-income housing community for older adults indicated that their experiences were quite different from older adults who own homes. They reported substantially more financial instability and limits in housing options. Additionally, they expressed greater reliance on resources provided through the housing community for transportation, recreation, and food than other older adults. Rental units for older adults can be subsidized through federal funding mechanisms, such as Section 42 housing, but key informants report these have long waiting lists.²³ Additionally, many older adults must be at least 62 years old to be eligible for certain types of affordable housing units. A lack of eligibility creates a gap in services, particularly for the younger-old, which one key informant reported as “living in filth and squalor” because of the low quality of the units that they can afford.

Housing Affordability and Neighborhood Inequities

The socioeconomic status of a neighborhood is related to residents’ health and social outcomes. Adults living in high-poverty neighborhoods are more likely to impairment, and accelerated aging²⁴, regardless of income level. Because both Latinx and Black older adults are more than twice as likely as White older adults to live in high- poverty neighborhoods regardless of income, the former face increased poverty-related risk of chronic illness, limited mobility, cognitive impairment and accelerated aging.²⁵

Older adults participating in focus groups reported that in some Indianapolis neighborhoods, changing demographics over time led to a reduction in property values, while others reported that gentrification and subsequent rising property values led to unaffordable property taxes.²⁶ According to the older adults, both phenomena resulted in many long-term residents moving away from these neighborhoods. In 2021, 31 percent of older adults surveyed in Central Indiana reported that having enough money to pay their property taxes was at least a minor problem during the past year, representing an 11 percent increase since 2017.^{27 28}

Homeownership

In 2021, the homeownership rate among older adults in Central Indiana was 76 percent. This rate varied between different age ranges. The younger-old age group had a homeownership rate of 77 percent, the middle-old age group had a homeownership rate of 81 percent, and the oldest-old age group had a much lower homeownership rate of 70 percent. ²⁹ Housing costs for older adult households are lower when they own their own homes and do not have a monthly mortgage payment. Among older adults in the Central Indiana region, the proportion of homeowners without a mortgage is 32 percent. This proportion increases with age: 24 percent of the younger-old, 40 percent of the middle-old, and 50 percent of the oldest-old own their homes outright.

Not all Central Indiana households are equally likely to own their homes. While 82 percent of White older adults are homeowners, only 53 percent of Black older adults and 70 percent of Latinx older adults own their own homes. ³⁰ These proportions explain why Black and Latinx older adult households are more likely to experience housing cost-burden than White older adults.

Housing Instability and Homelessness

According to the 2023 Point-In-Time (PIT) Count of persons experiencing homelessness, in Marion County, 1,619 individuals were identified as experiencing homelessness. This indicates a decrease in the unhoused population, as 1,761 individuals experienced homelessness in 2022. Age specific data shows that 25 percent of Marion County adults experiencing homelessness were age 55 and older. Most unhoused individuals (78 percent) are sheltered in emergency or transitional housing. While unsheltered individuals of all ages represent 22 percent of the total PIT count, the number of the unsheltered population increased from 202 to 357 in 2023. According to the PIT count, in 2023, 328 (20 percent) individuals were identified as chronic homeless showing a 136 percent increase compared to the 2022 PIT Count.³¹

Recognizing multiple poverty- and health-related disparities is crucial for preventing homelessness and providing housing for older adults who currently experience homelessness. In both the United States and Indiana, disparities in homelessness exist across race and veteran status.³² For instance, older adult veterans are three times as likely to experience homelessness compared to older adult non-veterans.³³ Additionally, Black veterans are disproportionately represented within the veteran population experiencing homelessness.³⁴ Locally, Black adults are disproportionately likely to experience homelessness, comprising 52 percent of people experiencing homelessness in Marion County but fewer than 30 percent of its residents. Veterans also make up a disproportionate number of individuals experiencing homelessness (182 individuals of any age, 11 percent of the unhoused population in 2023 compared to 5 percent of Marion County population in 2020). However, the number of unhoused veterans has been declining since 2017, when it was at 328 individuals or 18 percent of the unhoused population.³⁵ To learn more about some of the systemic factors that lead to disparities in homelessness among older adult veterans, please read ‘Highlighting Equity’ on the following page.

Barriers to affordable Housing

Key informants interviewed for this report noted that older adults with criminal histories find it particularly difficult to find rental housing that will accept them. Specifically, the U.S. Fair Housing Act does not include formerly incarcerated people as a protected class, including those who have been arrested but not convicted.³⁶ Landlords may perceive a criminal history as a risk to a rental community’s safety, which is a permitted form of discrimination. This makes sustained, affordable living particularly challenging for formerly incarcerated people, because not having an address oftentimes makes it difficult to maintain consistent employment and income. Older adults with criminal histories tend to be disproportionately Black, Latinx, or have disabilities, adding to existing housing inequities. Nationally, transgender older adults also experience barriers to housing. According to the National Center for Transgender Equality, 19 percent of transgender older adults have been denied housing because of their gender identity and 11 percent have been evicted due to transgender discrimination.³⁷ Lastly, older adult focus group participants across multiple income groups do not believe most assisted living communities are affordable, and do not anticipate being able to live in one. Most of these participants live in their own homes or in rental units. Key informants note that the inability to purchase a new home and relocate forces lower-income older adults to remain in their existing neighborhoods.