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26 REPORT: HOUSING IN U.S. NOT SET UP TO HANDLE AGING POPULATION e U.S. is not prepared to accommodate its rapidly growing older population where housing needs are concerned, according to a report by Harvard Joint Center for Housing Studies and AARP Foundation. e report, titled Housing America's Older Adults – Meeting the Needs of an Aging Population, estimates that the population of adults age 50 and above will reach 133 million by 2030, a jump of more than 70 percent since the year 2000. But while their numbers are rapidly increasing, the amount of housing that is affordable, physically accessible, and located well is not, the report says. "Recognizing the implications of this profound demographic shift and taking immediate steps to address these issues is vital to our national standard of living," said Chris Herbert, acting managing director of the Harvard Joint Center for Housing Studies. "While it is ultimately up to individuals and their families to plan for future housing needs, it is also incumbent upon policymakers at all levels of government to see that affordable, appropriate housing, as well as supports for long-term aging in the community, are available for older adults across the income spectrum." e report found that the rising cost of housing often forces older adults (about 33 percent of Americans age 50 and older and about 37 percent of Americans 80 and older) to cut back in other areas such as food, health care, or retirement savings. And they may be paying those high housing costs for a home that does not even meet their needs, the report found. Many of the nation's homes lack accessibility features such as no-step entries that are necessary in order for older Americans with disabilities to live comfortably in their homes, the report says. Furthermore, transportation is an issue for older Americans who do not drive; often they are forced to live in homes that are in car-dependent areas and are not near accessible transportation, which tends to isolate them from friends and family, the report notes. Another issue the aging population faces is that older adults who have disabilities or long-term health care needs are at risk of being prematurely institutionalized due to disconnects between the housing and healthcare systems, according to the report. e younger baby boomers in their 50s now may not be able to cover the cost of housing in their retirement years due to lower incomes, increased debt, and the rising costs associated with owning a home. e report indicates that most people over age 45 prefer to remain in their current homes, and an estimated 70 percent of them will need some type of long-term care by the age of 65 and their housing situation may not be adequate. "As Americans age, the need for safe and affordable housing options becomes even more critical," said Lisa Marsh Ryerson, president of the AARP Foundation. "High housing costs, aging homes, and costly repairs can greatly impact those with limited incomes. e goal in our support of this report is to address the most critical needs of these households, and it is AARP Foundation's aim to provide the tools and resources to help them meet these needs now and in the future." PITTSBURGH BEST, SAN FRANCISCO WORST FOR HOME FLIPPING Recent data released by RealtyTrac for the second quarter of 2014 indicated that Pittsburgh is the best market in the nation for home flipping, while the San Francisco- Oakland-Fremont market was the worst. Flipped homes accounted for 3.6 percent of total home sales in Pittsburgh, an increase of 3 percent over the second quarter last year. But while the average gross return on investment for flipped homes in Pittsburgh was 63 percent for Q2 2013, that percentage shot up to 106 percent for Q2 2014, the highest percentage by far for any market in the nation. Rounding out the top five best markets for flipping homes in Q2 2014, according to average gross ROI, were New Orleans-Metairie- Kenner, Louisiana (76 percent); Baltimore- Towson, Maryland (73 percent); Virginia Beach-Norfolk-Newport News, Virginia (66 percent); and Deltona-Daytona Beach-Ormond Beach, Florida (63 percent). e national average gross ROI for flipped homes was 21 percent, according to RealtyTrac. San Francisco-Oakland-Fremont turned in an average gross ROI of -9 percent, the lowest in the nation, RealtyTrac reports. Flipped homes made up 5.6 of all home purchases in the Bay Area for Q2 2014, a decrease of 33 percent from the same period last year. e only other market with a negative average gross ROI in Q2 2014 was Las Vegas-Paradise, Nevada (-4 percent). ird worst was Mobile, Alabama (9 percent), while Charlotte- Gastonia-Concord, North Carolina-South Carolina; and Madison, Wisconsin, tied for fourth worst with 13 percent each. According to RealtyTrac in Q2 2014, flippers bought homes at an average of 8 percent discount from their estimated market value (AVM), then resold the homes at an average of 6 percent higher than their AVM. In all of the 10 best markets for flipping homes except one (Chattanooga), flippers purchased properties at a discount of 24 percent or more from their AVMs, then sold the properties at a premium rate above their AVMs.

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