WASHINGTON– Homeowners 62 and older saw their housing wealth decrease by one percent in Q4 2024 to $13.95 trillion, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
Senior home equity peaked at a record $14.09 trillion in Q2 2024.
The decline in senior homeowner’s wealth was largely attributable to an estimated 0.7 percent (or $118 billion) decrease in home values offset by a 0.9 percent (or $21.1 billion) increase in senior-held mortgage debt. Riskspan noted that the decline in home equity corresponds to the seasonal downturn in home sales, which typically occurs during the winter months.
“A new study from the Center for Retirement Research at Boston College suggests that retirees underestimate the prospect of a large healthcare spending shock as they age,” said NRMLA President Steve Irwin. “The strategic use of home equity can become a valuable asset should such an occurrence happen, especially since the annual median cost for a home health aide can approach $75,500 or more.”
