How Families & Seniors Can Cope With Rising Housing Costs (2026 Guide)

If you're worried about an older loved one struggling with housing costs, you're not alone.

Rising home expenses are squeezing many seniors but families who plan early can make a huge difference.
 

1. Help Them Map Out Income (and Plan for the Unexpected)

Sit down with your loved one and review:

• What income sources they have (Social Security, pension, savings, etc.)

• How long those funds will last, even with annual inflation

• What happens if one spouse passes away

Ask yourself: How will taxes, home insurance, and other expenses be paid if my spouse dies? Planning for this scenario now can prevent a financial crisis later.

 

2. You Might Be Missing Thousands in Benefits

More than 9 million eligible seniors are missing out on $58 billion in benefits that can help afford basic necessities, according to the National Council of Aging.

What your family can do:

• Help them check for local property tax breaks and other senior benefits

• Use the free Benefits CheckUp tool together to see what they may be eligible for

You can also explore government benefits at Benefits.gov to find programs that match your loved one's situation.

For surviving spouses, nonprofit organizations like Wings for Widows can help navigate new financial challenges.

 

3. Consider Downsizing Sooner (as a Family Decision)

If your loved one is thinking about downsizing, doing it sooner rather than later lets them invest some of the proceeds for future income and your family can help them plan the transition.

Good news for married couples: Those filing jointly who've lived in their home as a primary residence can exclude up to $500,000 of capital gains when selling. But if a spouse dies, that exclusion drops in half just two years after their death, so timing matters.

For more on home sale tax rules, visit IRS Publication 523 (Selling Your Home).

 

4. Life Insurance Can Provide Immediate Cash for Families

Buying whole life insurance while your loved one is younger means that if a spouse dies, the surviving spouse receives an immediate, tax-free, lump-sum payment that:

• Isn't affected by stock market swings

• Can be used right away for expenses

• Can have the rest invested to generate ongoing income

Learn more about life insurance at USA.gov: Life Insurance.

 

5. Earn Extra Income From the Home (Family-Supported)

If your loved one has extra space and is open to it, consider renting out a room to generate monthly income.

Home-sharing can help offset mortgage, property taxes, and upkeep costs and family members can help screen roommates or manage the arrangement.

 

6. Reverse Mortgages Are Safer Now (and Can Help Them Stay in Their Home)

If your loved one wants to keep their home but can't afford monthly home equity loan payments—a reverse mortgage might be an option.

What's changed:
Reverse mortgages once had a bad reputation for predatory lending and high fees. Today, they're:

• Insured by the Federal Housing Administration (FHA)

• Standardized with defined guidelines

• Protected by stronger consumer safeguards

How it works:

• They get money paid monthly for income

• They still own the house

• They're responsible for taxes, utilities, insurance, and upkeep

• They can stay in their home until they die or sell it and pay off what they owe

 

7. Find Local Housing Assistance as a Family

Your family can help search for local housing assistance programs, including:

• Rent assistance

• Home repair grants

• Utility help

• Property tax relief

Visit Housing Assistance to find programs in your loved one's area.

You can also check USA.gov for broader assistance options.

 

Your Family's Next Steps

1. Have a conversation about income, expenses, and housing goals

2. Check what benefits they're missing together using Benefits CheckUp or Benefits.gov

3. Explore housing assistance at USA.gov: Housing

4. Talk to a financial advisor about downsizing, life insurance, or reverse mortgage options

5. Plan for the unexpected! Especially for surviving spouses

You don't have to face this alone. With the right planning and resources, your family can help your loved one stay in their home and maintain financial security.

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