Older Americans have a tight grip on their assets, and they don’t plan on letting go anytime soon. New data from American Advisors Group (AAG), reveals that seniors' homes not only have a great deal of monetary worth, but also significant sentimental value. To gain a deeper understanding of this relationship, AGG conducted the Importance of Home survey among 1,500 participants aged 60 to 75.
"Our studies have shown that seniors in this country have a strong attachment to their home and the pandemic only strengthened that bond," said AAG chief marketing officer Martin Lenoir. "It's no secret that many seniors have built substantial equity in their homes after years of ownership, but what is interesting is that very few want to sell their house to obtain that money. For seniors, the comfort, safety and independence of their home outweighs the desire to move and that's why we're seeing so many older Americans interested in reverse mortgages."
Data from the survey reveals that a majority of seniors do not intend to sell their home and have no plans of ever moving. In fact, 82% of seniors say they want to live in their home for the rest of their lives.
Many of them desire the comfort of their current home and would not want to move into a retirement home or into a nursing facility. Overall, 92% of seniors stated they prefer to live their later years in their current home instead of moving to an assisted living facility. This is mainly due to the fact most seniors feel safer at home (83%) than anywhere else.
This behavior is likely the result from the COVID-19 pandemic. Since the pandemic was a leading cause of concern for American seniors throughout the past few years, with half (50%) of survey respondents saying the pandemic made their desire to live at home stronger.
Additionally, many seniors place sentimental value in their home, separate from finances. Nearly two in three (62%) seniors say they have an emotional attachment to their home, and over half of seniors (56%) say their home reminds them of their family.
Owning a home also provides seniors with a sense of independence — something they lose as they progress into the later years of their lives. More than one-third (40%) of older Americans said their "Independence" is the most important benefit of living in their home.
Most importantly, new homebuyers should note that seniors intend to hold onto their homes for as long as possible, with 68% expressing their desire to stay close to their family for the rest of their life.
