Senior Housing Wealth Reaches Record High of $7.17 Trillion

Homeowners age 62 and older saw their collective housing wealth increase in Q2 2019 by 0.5% compared to the previous quarter. This constitutes an increase of approximately $32 billion to a record of $7.17 trillion, according to data provided by the National Reverse Mortgage Lenders Association (NRMLA) in conjunction with data analytics firm RiskSpan.

The increase was reported Tuesday in the quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI).

The RMMI rose in Q2 2019 to 258.44, which marks another consecutive all-time high since the index’s original publication in 2000. That increase was described as being primarily driven by an estimated 0.5% (or $47 billion) increase in the values of homes owned by seniors.

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This was offset, however, by a 0.9% (or $14.6 billion) increase of senior-held mortgage debt.

“Many retired and soon-to be-retired Americans lack the financial assets for a comfortable retirement, yet the most commonly held and valuable asset for most of them is their home,” said NRMLA EVP Steve Irwin in a press release announcing the record. “Responsible use of home equity may be the best option that ensures they have food, medicine and other basics for a comfortable retirement.”

Senior housing wealth topped $7 trillion for the first time ever according to a previous RMMI data release in March 2019, before hitting a new threshold of $7.14 trillion the following June. The RMMI also previously recorded a year-over-year increase of 6.5 percent in 2018, lower than the 8.4 percent increase recorded in 2017 and the 8.2 percent increase in 2016.

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  • $7.17 trillion in housing equity held by our seniors over 62 years of age, not to shabby of a statistic for us to be working with!

    So many of these seniors could benefit tremendously from the proceeds of a reverse mortgage. Many seniors are struggling with their retirement dreams, they have debt as well as mortgage payments facing them monthly. A reverse mortgage can pay off many of these debts and mortgages attached to their properties. That in itself would improve the quality of life and enable many seniors to be able to retire!

    Finding those seniors are the trick, they are not going to walk up to you in the form of leads as it did in past years. An originator has to work to gain access to these seniors. Originators will need to do a lot of research through many of the sources available out there.

    Holding educational work shops in conjunction with an elder law attorney and home health care provider is a great way to get a lot of seniors together. Go to the county you live in, get with their department on aging, many counties will work with you on arranging a place to hold the workshop as well as assist you in the advertising of your event.

    There are many ways to reach these seniors, but it will take work, but in the end, the rewards will be there for you!

    John A. Smaldone
    http://www.hanover-financial.com

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