Affordable Housing Options for Seniors

Aging is inevitable, and for many of us, that means we’ll need more support and care later in life.

Senior care options can be expensive, so for seniors on a budget, we’ve rounded up some living options and other strategies that can help make paying for care more affordable.

Aging in Place at Home With In-Home Care

People overwhelmingly want to age in place at home, says Rani E. Snyder, program director at the John. A. Hartford Foundation, a New York City-based nonprofit focused on caring for older adults.

To do so, however, you may need to rely on someone who can help you with activities of daily living – such as bathing, dressing and using the bathroom – and other needs as they arise.

Paid caregivers

Professional at-home personal care aides come to the client’s home on a schedule, such as two or three days a week, and provide assistance with daily tasks. A certified nursing assistant, also known as a home health aide, is trained to provide additional care, such as changing dressings, providing medication and helping a client with walking aids.

Prices for these caregivers can vary depending on geographic location and the type and level of care needed. On average, however, the monthly cost for homemaker services is $5,720, and a home health aide costs $6,292 per month, according to Genworth Financial's 2023 Cost of Care Survey.

Informal caregivers

Another option is to rely on a network of informal caregivers, such as family and friends, who can help with grocery shopping, preparing meals and arranging for transportation to medical appointments, Snyder says.

While the senior may not be required to pay cash to the caregiver in these situations, there is still a cost to it. According to the Bureau of Labor Statistics, more than 37 million adults provide unpaid eldercare in the U.S. Almost half of these caregivers provide care several times a week, and close to one-quarter do so every day. Average daily care amounts to about 3.6 hours.

Informal caregivers may also spend their own money. A 2021 report from AARP notes that caregivers spent $7,242 per year – 26% of their income – providing care to a senior.

There are resources for informal caregivers, such as the National Family Caregiver Support Program, which provides grants to states and territories to help family and informal caregivers. States use these grants to provide an array of services, including individual counseling, caregiver training and assistance in gaining access to services.

But remember, on top of the financial costs, there can be an emotional cost to caring for a loved one that can’t be quantified.

Adult Day Care

For some people, staying at home all day, every day gets too lonely or otherwise isn’t possible. An adult day care center may be a good solution.

Adult day care centers operate much like child day care facilities do: They look after the needs of the adult during the day in a secure environment and provide an array of services, including health monitoring and occupational and speech therapy. Some centers also offer activities, such as games, arts and crafts and exercise classes. A senior can go every day or a couple times a week as needed.

"It's essentially for people who need a caregiver, but the caregiver has to go to work or needs a break from caregiving responsibilities," Snyder says.

The Centers for Disease Control and Prevention reports that 4,130 adult day services centers operate in the United States. On any given day, these facilities support 237,400 seniors.

Genworth reports that adult day care costs an average of $2,058 per month.

Adult Foster Care

Adult foster care – also referred to as adult family care, elderly foster care and small group assisted living – typically involves a home-like facility with paid staff members. Residents receive assistance with daily personal care, medication management, transportation and meal preparation.

These facilities are different from other live-in care options in that they are much smaller, typically housing just a few residents. In contrast, many nursing homes and assisted living communities provide care for dozens or hundreds of people at a time.

Adult foster care homes are typically administered by the state, so there can be large variation in costs, services and rules depending on where the home is located. Generally, however, they tend to cost less than assisted living, which averages $5,350 per month, and nursing homes, which can cost up to $9,733 per month, according to Genworth.

Medicare does not cover adult foster care, but Medicaid does help with the care portion of the monthly fee. Veteran’s benefits (more on those below) also sometimes help cover costs associated with adult foster care.

The quality of adult foster care also varies widely, notes Howard Gleckman, a senior fellow at the Washington, D.C.-based Urban Institute who researches aging policy issues and is the author of the book "Caring for Our Parents."

To gauge how well an adult foster care facility is run, he advises visiting it to see how residents and staff members interact, talking to current residents and their families and asking for references from relatives of people who have previously lived there. Find out how long the owner has been running the facility, and observe how he or she interacts with residents.

Community Groups and Resources

Some churches, temples, mosques and other places of worship have volunteer groups that help older people. Similarly, community villages – typically groups of neighbors that band together to help one another – can also provide assistance, Gleckman notes.

In Washington, D.C., for example, Capitol Hill Village provides volunteers to run errands, prepare meals, do light home maintenance and simple repairs, provide pet care and wait for a home repairman or a delivery for community members. CHV also organizes a variety of programs and services, ranging from volunteers calling seniors to check in a few times a week to more involved educational and entertainment programming often open to the public.

Groups like CHV typically charge membership fees. For CHV, basic membership costs $405 for an individual or $810 for a household annually. This tier includes volunteer services, social and educational programs and other perks, but care services are charged separately. An urgent membership, which includes care for serious medical needs, runs $925 per year for an individual and $1,850 for a household. These care programs are subsidized, and CHV vows not to turn away anyone for an inability to pay.

Senior Apartments

Senior apartments are “a housing option for vulnerable populations, including seniors, disabled persons and low-income residents often managed by local civic authorities, such as a state or county housing authority,” explains Chris Orestis, Maine-based president of retirement consultancy Retirement Genius.

These communities may offer many of the same benefits and services as any other independent or assisted living community. However, because they’re earmarked for low-income seniors, there may be additional subsidies, grants and other funding tools available to help offset costs, including:

Veteran Benefits 

Veterans and their survivors who are eligible for a Veterans Administration pension and are housebound or need care from another person may be eligible for additional monetary benefits under the Aid & Attendance and Housebound programs.

Under Aid & Attendance, for instance, veterans may obtain increased pension benefits for several reasons, such as:

Monthly benefits for this program can total $2,300 for single veterans and more for couples. Details about the program and how to apply are available from the VA.

Other Money-Saving Strategies

If you start early with your preparations for paying for senior care, you have some other options open to you, including: