Seniors cash in on real estate

Homeowners 62 and older saw their housing wealth grow by 4.0 percent or $396 billion in the third quarter to a record $10.19 trillion from Q2 2021, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.

Prepared by RiskSpan, Inc.
Data sources: American Community Survey, Census, FHFA, Federal Reserve
Prepared by RiskSpan, Inc. Data sources: American Community Survey, Census, FHFA, Federal Reserve

The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMIRMMI) rose in Q3 2021 to 356.37, another all-time high since the index was first published in 2000. The increase in older homeowners’ wealth was mainly driven by an estimated 3.7 percent or $440 billion increase in home values, offset by a 2.2 percent or $44 billion increase in senior-held mortgage debt.

“One of the biggest fears that workers and retirees have is running out of money in retirement and having to subsist solely on Social Security,” said Steve Irwin, President of NRMLA. “That’s why housing wealth should be considered with other financial assets when developing a comprehensive retirement plan.”

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