In the next decade, the population 75 and over will increase from 17 million to 25 million, and according to our new report, the US is not prepared to provide housing and care for this surging population.
Since the beginning of the Covid-19 pandemic in early 2020, we have watched dramatic changes in housing markets, urban life, and residential patterns impact American cities and their neighborhoods in deep and lasting ways. Mountain West cities in particular have experienced an influx of telecommuting and remote workers, new residents pushed out of more expensive cities, and new housing market investment that has increased home prices more rapidly and more dramatically than in any other region of the country. However, often overlooked in conversations about the impact of the Covid-19 pandemic on housing in the Mountain West are middle neighborhoods—areas of cities that are on the edge between economic expansion and disinvestment, neither growing nor declining.
Over the next ten years, the US population over the age of 75 will increase by 45 percent, from 17 million to nearly 25 million. The growth is widespread, across urban, suburban, and rural communities, and sharpest among the baby boomers who will begin entering their 80s in this decade.
This paper estimates the impact of household liquidity provision on macroeconomic stabilization using the 2020 CARES Act mortgage forbearance program. We leverage intermediation frictions in forbearance induced by mortgage servicers to identify the effect of reducing short-term payments with little change in long-term debt obligations on local labor market outcomes.