Green Residences
TRENDS THAT MAKE HOUSING MORE ECO-FRIENDLY As more people strive to build a sustainable future, the housing industry sees more innovative changes that shift toward environmental consciousness. These trends will likely continue as the rising generations are increasingly concerned with climate change and other “green” causes.Eco-friendly housing not only cuts down environmental impact but creates healthier, more efficient living spaces—and health is a priority for many in the senior population. Making a shift toward sustainability can save senior clients money and improve the resale value of their properties. Here are five of the main trends shaping the landscape of eco-friendly housing. Passive Design and Net-Zero Homes:Passive design optimizes natural resources such as wind and sunlight to create living spaces that don’t rely as heavily on artificial heating and cooling systems. Skylights, windows, and ventilation are planned strategically to keep dwellings cooler in summer and warmer in winter. The location and orientation of the home also make a difference in passive design.Net-zero homes aim to produce as much energy as they consume. This often means that net zero homes boast superefficient floor plans, but sustainability-seekers can use a variety of methods to reach net-zero. They can incorporate features like solar panels to produce energy while also using energy-efficient appliances, advanced insulation, and xeriscape yards to conserve resources. The blend of producing and reducing resources is key to building a net-zero home. Smart Home Technology for Energy Efficiency:Smart home systems are designed to simplify residents’ lives by saving them time, effort, and money. This means that many smart homes include systems that focus on energy efficiency. Smart homes often come with controls that allow homeowners to monitor and control energy consumption in real time, even when away. Energy-efficient appliances, automated lighting, and smart thermostats reduce energy use. These features not only enhance the comfort and convenience of living in a smart home but also make them more eco-friendly.As an added benefit, using smart home and energy-efficient appliances can often save clients money. In our current economy, inflated pricing puts pressure on bills related to our use of fossil fuel resources, including home heating and cooling, water bills, and electrical bills. Cutting down clients’ environmental impact could also mean cutting down on their monthly expenses. Recycled and Sustainable Building Materials:According to the EPA’s Advancing Sustainable Materials Management 2018 Fact Sheet, in 2018, theUS added 144 million tons of construction-related waste to its landfills. Luckily, the amount of housing-related refuse can decrease as more consumers use recycled and sustainable building materials in their homes.Homebuyers are more inclined to choose green resources than before, including reclaimed wood, bamboo, recycled steel, and eco-friendly insulation. Using sustainable building materials helps reduce the environmental impact of construction and promotes a more circular economy.Homeowners are also conserving more resources by purchasing secondhand materials when building or remodeling, and they are donating extra items instead of throwing them out. Thrift stores, online marketplaces, and Habitat for Humanity ReStores are all effective platforms for recycling buildingmaterials and cutting down waste. Water Conservation and Management:Water shortages and competition for water sources make conserving this resource a priority for many.The EPA notes that using less water provides consumers with many benefits. When we collectively use less water, not only is the resource conserved, but water quality, costs, and public health all improve. Lowflowfixtures, rainwater harvesting systems, and drought-resistant landscaping are all eco-friendly housing trends that conserve water.Greywater systems recycle water from sinks and showers for nonpotable uses. Xeriscape yards require little or no watering and rely on smart designs and naturally occurring rainfall to stay beautiful.These home improvements are some of the many trends that contribute to water conservation. Prefab and Modular Construction:The preference for prefabricated and modular construction is a trend in the building construction industry that is here to stay. Modular construction techniques reduce waste, energy consumption, and project time. These methods often involve manufacturing building components off-site and then transporting them to the building lot where they are put together. This approach to building often yields more precise construction, reduced transportation-related emissions, and increased overall efficiency. Not only are these practices better for the environment, but they can be extremely cost-effective. This trend will likely safeguard the earth’s resources as well as your clients’. ConclusionEco-friendly housing trends are evolving rapidly. Innovative designs, advanced technology, and conscious construction aim to use resources efficiently and show how the future of housing is moving in a green direction. Moving toward sustainable housing can help your clients save money, improve health, increase resale values, and create more resilient communities. Staying informed about these sustainability trends positions you to guide your clients as they makehousing decisions that align with both their present needs and future aspirations.
Financing Strategies for the Golden Years
According to AARP, 48% of households headed by individuals ages 55 and older need to do more to prepare for retirement. Additionally, 29% of people in the US who are retired or nearing 65 years old have no retirement savings or pension. These statistics underscore a significant issue: Many individuals are not financially prepared for their futures. While some of your clients might be on track for retirement with the help of a financial planner or wealth advisor, others might need additional support. David Kerber, a financial planner and wealth manager at Mercer Advisors, offers valuable insights on how to better serve your clients with financial planning. What Your Clients’ Financial Advisors Want You to Know
Sustainability and Seniors
Exploring the core principles of sustainability and its impact on the well-being of senior clients.The effects of climate change are becoming clearer, and many companies and individuals are invested in reducing their harm to our environment for a more sustainable future. When facing a new purchase or a remodel, many consumers are drawn to eco-friendly, sustainable homes to both lower their impact on the environment and reduce monthly bills. What is sustainability?In the words of the US Environmental Protection Agency (EPA), “everything that we need for our survival and well-being depends, directly or indirectly, on our natural environment.” Every element essential to our daily lives, from wood and metals to plastics and fabrics, comes from nature. The materials used to build our homes, the energy that powers them, and the items we fill them with are all products of the natural world. So what defines sustainability? Put simply, a resource is sustainable if it is renewable and can be replenished at a rate equal to or surpassing its consumption. On a broader scale, sustainability also demands that we use natural resources responsibly so that future generations can enjoy a similar or even more bountiful way of living. Efforts to improve sustainability exist on national and global scales and span a variety of industries. However, developing sustainable life solutions can begin at the place we spend most of our time living: at home. What is sustainable housing?Sustainable housing is a holistic approach to addressing the challenges of contemporary living. It involves a careful examination of housing and community plans, all aiming to foster efficiency, reduce waste, conserve water, improve affordability, and create healthier environments. At the core of sustainability is the wise use of resources, broken down into two dimensions: Features such as xeriscape yards, greywater systems, solar panels, double-paned windows, and Energy Star appliances contribute to creating more environmentally conscious living spaces. Additionally, small changes like using LED lightbulbs, timed sprinklers, and proper insulation improve sustainability and save homeowners money. Sustainable housing goes beyond environmental considerations: It extends to the affordability and availability of homes in diverse markets. A sustainable home, based on the income levels of the local population, should be accessible to residents and provide them with housing that meets their basic needs. Also, the proximity of these homes to essential locations, like employment centers, stores, gas stations, and community hubs, is a crucial aspect of sustainability. The Impact of SustainabilityGoing green goes beyond being environmentally conscious. It also often translates to saving money.For many in the 55+ community, this will likely seem counterintuitive as, for many years, environmentalconsciousness almost always came with a huge price tag.Now, many eco-friendly trends are more affordable to adopt, and some will even save your clients money.The rationale is simple: Using fewer resources means paying for fewer resources. Many sustainability-focused updates require upfront costs, but they often yield longterm savings. Whether your clients in the 55+ community are actively seeking to reduce their carbon footprint or are simply interested in saving money, understanding the benefits of making eco-friendly changes is vital. Living a more sustainable lifestyle, including adopting eco-friendly housing options, is also proven to improve individual health and well-being. The research is clear:There is a direct connection between sustainability and improved health because of greater activity, cleaner water, lower exposure to toxins, and healthier foods, among other benefits. Older clients want to safeguard their health, so letting them know how eco-friendly housing options can improve their well-being is important.As your SRES® designee I will explore how making sustainability a priority benefits your older clients, from minimizing utility expenses and enhancing the resale value of homes to finding a comfortable living space and improving individual health. The EPA focuses on two main areas to promote sustainability: The EPA’s five sustainability indicators—air, water, land, ecological condition, and human exposure & health—help determine whether a resource is sustainable and to what degree.
Aging in Place: The Choice for Many Seniors
You don’t have to look far to appreciate that the U.S. population of older adults, those at least 65 years old, is increasing at historic rates. In the last decade, the population of older Americans increased by over 15 million, with many baby boomers now entering their 80s. The majority of those seniors live in their own homes. And while some older adults may prefer the assistance offered by senior living, the vast majority prefer to continue living in their homes for as long as possible—according to the Joint Center for Housing Studies of Harvard University, nearly 90 percent of adults over 65 want to remain in their current homes as they grow older.Labeled simply “aging in place,” this phenomenon will have a significant impact on the real estate marketand how you might work with clients, friends and even family. Meeting the Challenges of Aging in Place For seniors, aging in place is not as simple as just deciding that they’ll stay in their own home. For many, that home was well-suited for their more active, more mobile years. As they age, that home may present increasing challenges for them, caregivers and family. In fact, one-third of the participants in a 2021 AARP survey said modifications would be necessary in their current residence so they or a loved one could continue to live there should physical limitations occur.Needed changes can come from decreased mobility—an upstairs bedroom that once offered privacy and quiet may be increasingly difficult to get to. If the senior is using a walker, getting to a second-floor bathroom may be a near impossibility. For others, diminished cognitive skills and memory challenges may suggest the need for protection from a stove left on, scalding water, tripping hazards and more.There may come a time when a senior must move to a facility that provides greater assistance. Until then, there is a lot that can be done to make aging in place a more viable option. You can help your clients and their families think about whether aging in place is the right choice and how to best do it. THESE SIMPLE CHANGES MAKE AGING IN PLACE EASIERMany beneficial aging in place modifications are simple and relatively inexpensive. Aging in Place Remodels That Can Help, or Harm, Home Value All home modifications are not created equal when it comes to a home’s sales price. Some enhance its value. Others reduce it. According to Bankrate, these modifications can improve home value for seniors: Some aging in place modifications can decrease the value of a home.If resale value is a consideration, think carefully about these installs: PAYING FOR AGING IN PLACE REMODELINGAging in place remodels can get expensive, a concern for those on or near to fixed retirement incomes. Fortunately, there are a number of ways for seniors to pay for aging in place remodels, from borrowing against the equity they’ve built up in the property to other financing. Home equity line of credit (HELOC)—If a good portion of the home is owned outright (most of the mortgage is paid off), seniors can use that equity to obtain a home equity line of credit. Since the home is collateral for the loan, interest rates tend to be lower, and funds can be withdrawn as needed for the remodel. According to the IRS, homeowners can deduct the interest on up to $750,000 of the loan if the funds are used to “substantially improve” the home. Home equity loan—A home equity loan is similar to a home equity line of credit except that funds are released in a lump sum which is repaid in installments. Like HELOCs, home equity loans tend to have relatively lower interest rates. And the same tax benefits as a HELOC apply. Home improvement loan—If the homeowner has good credit, this type of personal loan from a bank, credit union or online or peer-to-peer lender frequently doesn’t require a lien to be placed on the home. Reverse mortgage—Seniors aged 62 or older who own their home outright (i.e., the mortgage is paid off)may be eligible for a reverse mortgage, which converts a portion of the home’s equity to cash while allowing them to continue living in the home. Instead of monthly repayments of the funds, the debt is due only when the property is sold or permanently vacated. State housing finance agency loans—State agencies and nonprofit organizations such as Rebuilding Together often offer financial assistance for seniors. There are also funds that may be available through the Older Americans Act, distributed by Area Agencies on Aging (AAA). Keep in mind that there are income-limit requirements, so seniors need to check for a HousingFinance Agency in their area to understand options.
Essential Conversations When Moving Near Family
Download the PDF Considering a move closer to family? Close proximity can often shift the dynamics of family relationships. Navigating these changes is difficult under any circumstances, but research shows that there are three primary situations that make relocating as an older adult more stressful:
Your Adult Children: A Financial Wildcard
Whether you’re planning for retirement or are already retired, you’ve likely examined all the key indicators to see whether your financial cushion is solid enough to meet your long-term needs. But one wildcard you may not have considered is your adult children turning to you for money or moving back home. Such requests can reshape your plans for retirement and downsizing or destabilize your long-term financial security. Pew Research Center found that it’s increasingly common for children to return to live with parents and to ask for financial help. After all, younger generations are grappling with a high cost of living, housing prices that are out of reach, and burdensome student loans. The study looked at the parent-child relationship and young adults’ experiences in early adulthood from several angles, including key milestones for young adults versus 30 years ago and the dynamics of financial independence of younger adults. Boomerang kids Pew’s research shows how common it has become for young adults to move back home, with 57% of those aged 18 to 24 living with parents. In 1993, that figure was 53%. Today, 21% of those aged 25 to 29 live with their parents. It notes that financial independence is a work in progress and that 44% of adults ages 18 to 34 with a living parent say they got financial help from their parents in the past 12 months. That can range from parents helping with medical bills and education to covering cellphone bills, subscriptions, and streaming services. Though 64% of young adults who live with a parent say the arrangement has positively affected their financial situation, it takes a toll on parents. Just 27% of parents say living with their young adult children has been a positive experience. For 18%, the experience has been negative financially. Set boundaries, protect yourself Here are six considerations if your kids have turned to you for help. Resources include:
Becoming Your Parents’ Parents
Sometimes, a parent’s decline comes gradually, giving you time and mental energy to plan. At other times, you’re thrust into a full-on caregiving role after a sudden event: a stroke, a fall, or a significant illness. No matter how you arrive in your caregiving role, you land in unknown territory trying to figure out your parents’ housing, finances, health decisions, and day-to-day care, all while managing your own life and career. That’s some of what Kim and Mike Barnes faced when they started caring for their parents. It inspired the couple to launch Parenting Aging Parents, a website and online community designed to help others navigate the difficulties of switching roles and becoming parents’ parents. Shared Personal Journeys The Barnes share their personal experiences throughout the site in videos and podcasts. Mike’s mom grappled with Alzheimer’s, and he needed to find memory care for her while also ensuring that his father received the proper care at his independent living facility. Kim’s mom had been independent and caring for herself but moved to an independent living building. She’d also been the victim of a scam, after which her kids started managing her finances. Their story resonates with many who are navigating the complications of caring for aging parents and facing a slew of decisions. If you’re in such a position, Parenting Aging Parents can help you face the incredible physical, financial, and emotional challenges that accompany such a role. The website features information and interviews with experts about everything from dementia, caregiving, and insurance to Medicare, legal topics, and end-of-life considerations. For example, two attorneys offer insight into the confusing and complicated legal aspects of medical decisions and what you need to know about a medical power of attorney, medical directives, HIPAA releases, and “DNRs” (Do Not Resuscitate) orders. In addition, housing issues get considerable attention, including discussions about home safety, planning vacations while leaving parents at home, and understanding senior living options. For instance, during a podcast, Mike discusses his and his sister’s challenges in choosing a memory care facility for his mom. He reflects on how little he comprehended at the beginning of the process and how he’d expected the experience to be like choosing an apartment in his twenties. Other topics include scam awareness, managing sibling disagreements about parental care, and how to approach the sensitive topic of taking away parents’ car keys. Strangers Unite for Support Another component of Parenting Aging Parents is a Facebook group. It’s a robust community of more than 12,000 people who come together to vent, ask questions, share recommendations, learn from one another, and find support and comfort from other people experiencing similar challenges. Recent conversations have included dealing with narcissistic parents, skilled nursing questions, cell phone recommendations, and convincing a parent that it’s time to consider assisted living. Further solace for Facebook group members comes from Zoom support groups every other week. Dementia, grief, making tough decisions, family dynamics, caregiver stress, and narcissistic parents are some upcoming topics.
9 New Year’s Resolutions for Your Home
Traditional New Year’s resolutions usually entail diet, exercise, and weight loss. Why not take a different approach in 2024 by channeling your energy into home upgrades that can enhance your comfort, safety, and enjoyment now and possibly increase the resale value of your home down the road? Here are nine ideas:
Senior Real Estate
The senior population plays a large role in the housing market. Last year, one-third of home buyers were 55+, and 80% of those 60+ in the U.S. own a home. This means your generation has a strong presence in the yearly housing market, and professionals pay attention to what you are looking for in a property. As boomers and GenX individuals approach retirement, the needs and preferences of the senior real estate market are changing. Let’s look at where people in your age bracket chose to live last year. Embracing new builds When compared to younger buyers, those in the 55 and older community showed a higher preference for purchasing new builds. While building a new home comes with benefits, there are notable drawbacks, such as the wait time for moving in and the perception that previously owned homes offer a better value. Why did seniors opt for new builds at higher rates? According to survey results, the top three reasons experienced buyers chose to “go new” included the ability to customize their home design, the allure of amenities in a new community, and the desire to avoid potential renovations or issues with plumbing and electricity. For buyers in this stage of life, prioritizing customization and avoiding hassles takes precedence over the convenience of quick move-ins and potential savings on a resale property. Choosing non-traditional homes Across all generations and age ranges, stand-alone single-family homes remained the overwhelming favorite across all generations. However, boomers and seniors were more inclined toward alternative dwelling types than other buyers. As movers aged, the likelihood of choosing townhomes, apartments, condos, and other non-traditional homes increased. The motivation behind these choices varies—some seek to manage less space, others desire a community of fellow seniors, and many aim to reduce the concerns of outdoor maintenance. Still, within the 55 and older community, there is some diversity. Those opting for senior-focused communities showed distinctions based on age. Younger retirees were more drawn to resort or recreation areas, while older tended toward urban settings. Family is at the forefront In 2022, the top reason retirees chose to move was to be closer to family, and this desire increased with age. When asked about their main reason for buying a new home, 17% of those aged 57-66 wanted to be near family. This number rose to 24% for 67-75-year-olds and 30% for those 76 and older. Around 12-14% of home buyers ended up in multi-generational households, meaning they now live with their parents, adult children, or extended family members. Whether driven by a wish to avoid loneliness, facilitate caregiving, or simply enjoy added companionship and support, buyers were often willing to compromise in other aspects of their living arrangements to be close to family members.
Moving Trends: Where Seniors Choose to Reside
The senior population plays a large role in the housing market. Last year, one-third of home buyers were 55+, and 80% of those 60+ in the U.S. own a home. This means your generation has a strong presence in the yearly housing market, and professionals pay attention to what you are looking for in a property. As boomers and GenX individuals approach retirement, the needs and preferences of the senior real estate market are changing. Let’s look at where people in your age bracket chose to live last year.