The other major financial anchor holding back many households today is ongoing student loan debt for either the main homeowner or he or she acted as a cosigner on a student loan for a child or grandchild. Almost 43 million Americans owe an outstanding balance of $ 1.777 trillion in federal student loans as of the end of 2024, as per USA Today.
The combination of alltime record credit card balances now surpassing $ 1.2 trillion dollars along with medical, student, mortgage, and other consumer loan debt is quite stressful for millions of families across our nation.
AllTime Record Tappable Equity
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American mortgage holders now have access to a staggering $ 11 trillion in tappable equity that’ s over and above their existing mortgage balances, according to the May 2024 Mortgage Monitor report from the Intercontinental Exchange( ICE).
The amount of residential property equity is so massive that if all 48 million homeowners spent $ 10 million of their tappable equity each day, it would take more than 3,000 years to exhaust it, as per ICE. This amount of residential equity available is more money than the
Gross Domestic Product( GDP) of Japan, India, and the United Kingdom combined.
The same ICE report identified just five housing markets on the West Coast that represented a quarter of that $ 11 trillion equity number: Los Angeles, San Francisco, San Jose, San Diego, and Seattle.
Housing Wealth and Home Care for Older Residents
Let’ s take a closer look at health, wealth, and medical trends for Americans:
• U. S. homeowners over 62 years of age had $ 14 trillion in housing wealth as of Q2 2024.
• Social Security, Medicare, pensions, and investments are no longer sufficient enough for many people to cover rising monthly debts that especially includes skyrocketing medical costs(# 1 cause of bankruptcy).
• Just 14 % of American seniors, or fewer in pricier regions, can afford home care, as per Joint Center for Housing Studies, Harvard University.
• Over 40 % of Americans aged 65 + live alone, and this percentage number increases after the age of 80.
Just 14 % of American seniors, or fewer in pricier regions, can afford home care, as per Joint Center for Housing Studies, Harvard University.
• 70 % of people aged 65 + will need longterm care services, according to the U. S. Department of Health and Human Services.
• Fewer Americans can afford personal home care as costs have risen 20 % to 40 % since 2021.
• Some inhome care plans are now $ 5,000 to $ 10,000 per month and living facility care plans may reach $ 10,000 to $ 20,000 per month.
• Nearly 1in3 people have left their jobs to help ailing family members with lost wages possibly hitting $ 147 billion by 2050.
• Today, there are over 50 million family caregivers.
• Only 3 % to 4 % of Americans aged 50 + pay for a longterm care policy, as per LIMRA( Life Insurance Marketing and Research Association).
• For most homeowners, the equity in their primary home represents the bulk of their untapped wealth.
• Tapping into the taxfree home equity by way of a reverse mortgage strengthens clients’ abilities to possibly retire more comfortably, reduce financial burdens on families, and increase future wealth transfers.
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