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Senior housing wealth exceeded a record of $9.23 trillion in the fourth quarter of 2020. The quarterly NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI), a measure of housing wealth, rose in the first quarter of 2021 to 322.89, another all-time high since the index was first published in 2000.
The increase in wealth to this specific demographic was driven by a $329 billion increase in home values. However, this is offset by a 1.2% or $23.9 billion increase in mortgage debt held among seniors.
RiskSpan did note that the increase in RMMI is mainly due to the fact they updated their data sources for estimating the size of the 62+ homeowner population and senior home values.
President of the NRMLA, Steve Irwin said, “New research from Fidelity forecasts the average 65-year-old couple will spend $300,000 on healthcare in retirement, while single women will spend $157,000 and single men $143,000. As the Baby Boomer generation grows older, and the strain on government resources tightens, the strategic use of home equity can help retirees cope with these potential challenges."