As baby boomers—America’s largest aging generation—reach their late 60s, 70s, and beyond, a new housing crisis is quietly unfolding. Demand for senior living options is skyrocketing, yet the U.S. is severely underprepared. From rising costs to limited inventory and long waitlists, boomers are facing mounting challenges when it comes to where—and how—they’ll live out their later years.
A Wave of Demand That Can’t Be Ignored
By 2030, the U.S. population over 80 is expected to swell to 18.8 million—up by more than 4 million from today. This explosive growth is largely driven by the baby boomer generation, born between 1946 and 1964. But while the aging population grows rapidly, the pace of senior housing development isn’t keeping up.
Experts estimate the country will need over 560,000 new senior housing units by 2030. As of now, only about 191,000 units are expected to be built in that time frame—leaving a shortfall of more than 350,000 units. The result? Growing waitlists, especially for well-located or affordable options, and increased pressure on aging in place.
Construction Headwinds and Developer Hesitation
Senior housing development slowed dramatically during the pandemic and still hasn’t recovered. High interest rates, inflation in construction materials, labor shortages, and permitting delays have all made it less attractive for developers to break ground on new projects.
Instead of building, many large senior housing operators are turning to acquisitions—buying up existing properties rather than adding inventory. While this helps consolidation, it does little to address the overall supply gap.
Affordability: The Middle-Income Squeeze
The average cost for independent living now exceeds $4,100/month, and assisted living averages $6,400/month—figures that many middle-income seniors cannot afford. With long-term care insurance increasingly rare and savings levels insufficient for many boomers, affordability has become a central issue.
This so-called “forgotten middle” is too wealthy to qualify for Medicaid-supported housing but not wealthy enough to afford private-pay communities.
Long Waitlists Are Already Here
Some popular senior living communities in high-demand metro areas already have waitlists of 2–3 years—and those are just for market-rate units. Affordable senior housing, such as properties supported by tax credits or federal programs, often has waitlists that stretch even longer, sometimes indefinitely.
Families are being advised to apply years in advance, even if a move isn’t imminent. And in some cases, those in urgent need—such as a sudden health decline or loss of a spouse—find themselves with nowhere to go.
Aging in Place: The Stopgap and the Challenge
Due to the lack of options, many baby boomers are choosing to age in place. They’re investing in home modifications—such as stair lifts, walk-in tubs, and smart home technology—to stay safe and independent in their own homes. This strategy is often more affordable than senior housing but isn’t without challenges:
- Home maintenance and upkeep become difficult with age.
- In-home care services can be costly and hard to find.
- Aging in place contributes to housing inventory shortages, as fewer homes are being listed for younger buyers.
In the Chicago suburbs, for example, downsizing boomers have played a major role in tight single-family inventory, adding fuel to an already competitive housing market.
Policy Gaps and Planning Deficiencies
Experts argue that housing policy at the local and national levels has not kept pace with demographic reality. A few proposed or recommended solutions include:
- Requiring age-restricted housing in large-scale developments
- Expanding tax incentives for developers who build affordable senior units
- Increasing HUD funding for low-income senior housing
- Creating more accessible ADU (accessory dwelling unit) pathways in suburban areas to accommodate multigenerational living
Despite the urgency, progress is slow—and many municipalities lack the zoning flexibility or political will to push through changes.
What Can Boomers and Their Families Do Now?
If you're a boomer—or have a parent who is—planning early is essential:
- Get on waitlists now, even if you don’t plan to move for years.
- Talk with a financial advisor to understand what options will be feasible.
- Consider alternative models, such as co-housing, home sharing, or multigenerational living.
- Work with a local real estate agent who understands senior-specific housing trends and inventory.
In competitive markets like the North Shore and northwest suburbs of Chicago, working with an agent who knows the senior housing landscape can be key to staying ahead of the curve.
Conclusion
The baby boomer generation has transformed every phase of American life, and retirement is no different. But without rapid expansion of senior housing—and better affordability models—many boomers may find themselves stuck in limbo. Whether aging in place by necessity or waiting years for a unit to open, this next chapter will require more than just personal planning—it will require a shift in how we think about housing for an aging nation.
