Research consistently shows that most older adults prefer to stay in their own homes as long as possible. While emotional attachment is a strong factor, cost is frequently cited as a major consideration. Many assume it is cheaper to stay in an existing home than to move to a senior living community, such as a life plan community (also known as a continuing care retirement community, or CCRC) or other senior living options.
That may be true in some situations, but residents who have moved into retirement communities often tell me they didn’t realize how much they had been spending to maintain their previous homes until they actually sat down and totaled the numbers. Doing the math can change the perception of which option is more affordable over the long term.
Actual expenses vary widely by household, largely depending on the home’s age, condition and local climate, but there are ongoing costs to homeownership that homeowners sometimes overlook. Below is a closer look at the common costs to consider when deciding whether to remain at home or move to a senior community.
Home maintenance
A commonly used rule of thumb for annual home maintenance is $1 per square foot. For example, a 2,500-square-foot house could require roughly $2,500 per year for routine maintenance. You may want to adjust this estimate up or down based on your home’s age and condition. If you live in an area with harsh weather—frequent freezing temperatures, hurricanes, or flood risk—add about 30 percent to account for greater wear and tear.
Maintenance costs can spike in any year if a major repair is needed. Large one-time expenses such as replacing a roof, a heating/cooling system (HVAC), or siding can each run into the thousands of dollars. When you factor in landscaping, housekeeping, snow removal, leaf cleanup and occasional emergency repairs, annual costs for maintenance and unexpected spending could easily fall in the $4,000 to $6,000 range ($333 to $500 per month) for many homeowners.
>> Related: “…but I love my home”: Is Staying in Your House the Right Move?
Potential modifications
The maintenance estimates above do not include the cost of home modifications that might be required to make a residence safe and practical for aging in place. As mobility changes, features such as accessible entryways, non-slip flooring, improved lighting, wider doorways, lowered countertops, and a main-floor bedroom or bathroom become important considerations.
Depending on the home’s layout and the level of accessibility needed, modifications can range from a few thousand dollars for minor changes to $100,000 or more for major renovations or structural alterations. It’s also important to consider resale implications: highly specialized modifications can reduce a home’s appeal to potential buyers.
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Utilities and other homeownership expenses
Utilities represent another ongoing cost for homeowners who stay put. Heating and cooling costs can climb into the triple digits during peak winter and summer months, especially in older, poorly insulated homes. When you add water, phone, cable, internet and other monthly services, the total quickly grows.
Homeowner’s insurance, homeowners association (HOA) dues, and property taxes can also be significant, particularly in high-tax areas. Some homeowners will also still have mortgage payments or rental expenses to account for, depending on their situation.
Consider in-home care in cost of staying in the home
One of the biggest cost considerations when comparing staying at home vs. moving into a retirement community is the potential need for paid care. Services such as homemaker assistance or home health aides can be expensive. For example, median monthly costs for in-home aide services are often substantial and would be paid on top of regular homeownership expenses.
Retirement communities frequently bundle many services into a monthly fee—things like utilities, trash removal, landscaping, snow removal, housekeeping, fitness facilities and many home repairs. Residents also typically are no longer responsible for homeowners insurance or personal property taxes. Depending on the community’s pricing structure and included services, monthly expenses at a community can sometimes be comparable to or even lower than the combined costs of staying at home, especially once paid in-home care would be required.
>> Related: The Cost of a CCRC vs. the Value to Residents
Crunch your numbers
Life plan communities that provide a continuum of care can seem expensive at first glance. However, after you understand what the monthly fee covers—services, maintenance, amenities and access to higher levels of care if needed—the lifetime cost comparison may be more favorable than it initially appears. The best approach is to carefully tally your current and projected expenses, including maintenance, utilities, taxes, insurance, modifications and any likely paid caregiving. That comprehensive view will help you weigh the true financial trade-offs between aging in place and moving to a senior living community.