“The house is not just where they live. It’s how they fund what comes next.”
Recent discussions around the Silver Tsunami have focused heavily on demographics, but one element is often misunderstood: the role of home equity in senior housing decisions. Some argue that older adults will not sell their homes because they are supporting adult children, grandchildren, or surviving spouses. Others believe the home will remain untouched indefinitely.
This perspective, while understandable, overlooks a fundamental truth supported by extensive data: most senior housing transitions depend on accessing home equity.
Homeownership rates among adults 65 and older are at peak levels, especially in senior-dense metros like Naples, North Port, and Cape Coral. Baby Boomers hold an estimated $19 trillion in real estate wealth, and nearly 12,000 people turn 65 every day. As care needs rise, home equity becomes the primary resource enabling families to fund the next stage of life.
1. Home Equity Is the Retirement Lifeline
For the majority of senior households, home equity is the largest—often the only—significant asset.
According to the National Council on Aging (NCOA) and the Federal Reserve’s Survey of Consumer Finances:
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More than two-thirds of adults 65+ hold most of their net worth in their home.
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Liquid savings are often limited, especially among middle-market seniors.
When the time comes to fund assisted living or memory care, the home becomes the financial bridge.
2. Out-of-Pocket Financing Is the Norm
Nearly 67 percent of assisted living residents pay entirely out of pocket, according to the U.S. Department of Health & Human Services. With annual costs around $70,000 or more—and with no support from Medicare and limited access to Medicaid—the question becomes simple:
Where do families find the money? Most often, from the sale or leveraged value of the home.
3. The Timeline Aligns With Equity Access
The average length of stay in assisted living is between 18 and 22 months. This narrow, high-cost window aligns almost perfectly with the liquidity released through a:
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Home sale
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Bridge loan
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Reverse mortgage
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Private paydown using equity
Far from being theoretical, this sequence is common, practical, and financially efficient.
4. Reverse Mortgages Are Increasingly Used to Fund Care
In fiscal year 2023, more than 32,000 seniors accessed Home Equity Conversion Mortgages (HECMs). Many used these funds specifically to support care needs.
This trend underscores a broader behavioral reality: families view home equity as a strategic tool, not an off-limits asset.
What This Means for Capital Strategy
The belief that seniors will not sell their homes—what some call the “unsellable home”—is a myth. The home is very much in play, and it is already funding care transitions across the country.
Not every home will hit the MLS.Not every family story is the same.But the equity will be accessed—because it must be.
Whether through sale, reverse mortgage, bridge financing, or direct liquidation, home equity is the primary financial resource enabling care transitions for middle-market older adults.
How We Build for This at Mainstay
At Mainstay Senior Living, we serve seniors who are house-rich but liquidity-limited—those who want dignity, safety, and support but do not have unlimited means.
Our approach includes:
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Targeting underserved, high-demand secondary markets
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Designing communities that match real-world transitions
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Aligning capital, care, and construction to optimize outcomes
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Focusing on affordability and operational discipline
This demographic moment is not just an opportunity—it is a responsibility.
Final Thought
Let’s move past the belief that older adults are holding onto homes indefinitely. Equity is not dormant. It is already in motion, powering the decisions and transitions of millions of aging Americans.
The question for investors, developers, and senior housing leaders is clear: Are we building models aligned with the realities of how seniors actually fund care?
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About the Author: Tod Petty serves as Chief Investment Officer at Mainstay Financial Services & Mainstay Senior Living, guiding capital strategy and investor relations. He authors The Build Series—a collection of insights designed to bring clarity and discipline to senior housing investment.
