New data and industry analysis show that housing affordability problems don’t end when people pay off their mortgages—especially for seniors on fixed incomes. Costs tied to property taxes, insurance, utilities, and electricity are rising faster than incomes, l
The anxiety doesn’t lift when a mortgage is paid off. For many older Americans, the monthly bill changes form—property taxes, insurance premiums, and utilities step in—until “homeownership” starts to feel like another kind of cost burden.
The numbers underline the squeeze. ResiClub reports that 54% of the nation’s 35 million mortgage-free homeowners are age 65 or older, a group that represents just over a third of all U.S. homeowners. Among that population, roughly 64% own their homes outright.
Yet even with mortgages gone, affordability pressures persist. In 2024. a record 12.5 million senior households—more than a third of the age 65+ population—may have been “house poor. ” meaning they spend a disproportionately large share of their monthly income on housing costs. according to data referenced from U.S. Census Bureau reporting. That year, they spent more than 30% of their income on housing, with half spending more than 50%.
The government’s general rule of thumb is to spend no more than 30% of gross income on housing. including rent or mortgage payments. property taxes. insurance. and utilities. Since 2019. older adult households have made up roughly half of all newly cost-burdened households. based on figures cited from the Harvard Joint Center for Housing Studies.
Christine Healy, chief growth officer at Seniorly, put it plainly in a report: “That’s a sign that housing affordability challenges don’t disappear at retirement age, and can be extra problematic for older adults on fixed incomes.” She added, “Even seniors who did everything right aren’t safe.”
Her report points to a hard contradiction for owners who expect relief after payoff: for homeowners who paid off their mortgages entirely, median housing costs have still climbed 35% since 2019—about 1.5 times faster than their incomes grew.
The drivers are expensive—and they compound over time. Experts say about every housing-related expense has risen since the pandemic, faster than the 28.67% overall pace of inflation.
Rent since the pandemic has increased by 36.2% nationally, according to Zillow’s March report. Median property taxes rose about 30% between 2019 and 2024, according to the Tax Policy Center. Home insurance premiums surged by 40.4% between 2019 and 2024, said LendingTree. Electricity prices climbed 40% between 2020 and 2025, according to the Bureau of Labor Statistics.
Healy said the increases are particularly difficult for seniors on fixed incomes. “Property taxes, utilities and insurance are now eating away at their savings – and unlike younger Americans, many seniors can’t simply take on a second job or trade up to a higher salary to compensate,” she wrote.
The impact also shifts depending on where people live. CareScout analyzed the share of seniors who spend 30% of their income on housing—measuring housing-related costs including real estate taxes, home insurance, electric bills, assisted living costs, and more across the United States.
CareScout found seniors are most likely to be cost-burdened in California and least likely to be so in West Virginia. The comparison included West Virginia’s lowest property taxes at $881 and the smallest share of households facing high insurance costs, with 10.2% paying $2,000+.
As costs keep rising, the conversation turns from affordability to preparation—what people can do before the squeeze becomes permanent.
Steve Azoury. a chartered financial consultant and owner of Azoury Financial. advised seniors to start by mapping income and expenses: look at what sources of income will cover bills and how long those streams will last. even with annual inflation. He also suggested planning for life’s most destabilizing event—what happens if one spouse dies—so taxes. home insurance. and other expenses can be handled.
Azoury urged seniors to check for local property tax breaks and other benefits. More than nine million eligible seniors are missing out on $58 billion in benefits, according to the National Council on Aging. He also pointed to NCOA’s benefits check tool as a way to see what someone may be missing. and noted that for surviving spouses. nonprofit organizations like Wings for Widows can help navigate new financial realities.
He offered strategies that involve changing timing or structure, not just spending. “Consider downsizng sooner and invest some of the money to be used for income later,” Azoury said. Married couples filing jointly who have lived in the home as a primary residence for a while can exclude up to $500. 000 of capital gains from the sale. he noted. If a spouse dies, that exclusion drops in half two years after death.
Azoury also recommended buying whole life insurance while younger so a surviving spouse receives an immediate tax-free, lump-sum payment. He said the payout “that’s not subject to stock market movements and comes in handy when needed. ” adding that some money could be used for expenses while the rest is invested to generate income.
For seniors who want to stay put, Azoury floated additional options. If comfortable, he suggested renting out a room for extra income. If a household can’t afford monthly home equity loan payments but wants to remain in the home, he recommended considering a reverse mortgage.
Reverse mortgages. he acknowledged. had earned a bad reputation earlier for predatory lending practices. high upfront fees. and a lack of consumer protections. But he said they’re more regulated now. Reverse mortgages are insured by the Federal Housing Administration as a standardized. government-insured loan option with defined guidelines and borrower protections.
“You can get money to use for income that’s paid each month,” Azoury said. “You still own the house and pay the taxes, utilities, insurance and upkeep but now, you have a little extra money. You have the option to stay in your house until you die or you can sell it and pay off what you owe.”
For millions of Americans, homeownership is often treated as a finish line. The data and analysis here show it may be more like a turning point—one where relief from a mortgage doesn’t automatically translate into stable housing affordability. especially when fixed incomes meet rising taxes. insurance bills. and utility costs.
housing affordability seniors fixed income mortgage-free homeowners property taxes home insurance utilities reverse mortgages FHA Seniorly ResiClub Zillow Tax Policy Center LendingTree CareScout National Council on Aging