The American real estate market has long been an indication of what will happen to the European market in the sector. The most striking example of this was the 2008 crisis. An example is today's picture that is observed across the Ocean - rising costs for home repairs, insurance premiums and property taxes, while homeowners are faced with a shortage of affordable retirement options. The picture in Europe, and in particular in our country, is not much different.
Rising rents and housing prices, largely caused by the housing shortage and other increases in the cost of living, hit the elderly especially hard. In the last 30 years alone in the US, the number of homeless single people over the age of 50 has increased from 10% to 50%. The so-called "baby boomers" make up about 20% of the country's population. Most of them own more than one property, but they will likely have to part with some of their properties, and some will struggle to maintain even one home.
"The cost of housing and everything is getting higher," said Marcy Thompson, vice president of programs and policy at the National Alliance to End Homelessness, quoted by Business Insider. “And that's especially true for older people who are on fixed incomes.“
Homeowners on the Verge of Homelessness
Valerie Miller, 67, has owned her mobile home in San Bernardino, California, for nearly 35 years, but she still struggles to pay rent on the lot her home sits on and can't afford necessary repairs and maintenance.
Miller, who has never married or had children, plans to wait until age 70 to collect Social Security, but she has already started spending her meager retirement savings. She is considering selling her home, but she doesn't know where she could find a more affordable home.
The rise in homelessness among older Americans is the result of both demographic changes — the baby boom generation is aging — and rising housing and other costs. The number of older homeowners and renters who spend more than 30 percent of their income on housing has increased in recent years.
Allison Nickerson, executive director of LiveOn NY, a nonprofit focused on improving living conditions for the aging population, says Americans tend to underestimate the number of seniors suffering. One-fifth of Americans 50 and older have no retirement savings.
“We feel like baby boomers and older adults are getting pretty comfortable,“ she said. “But when you actually look at the number of people who are struggling, and then you look at the cost of living, which has gone up, and inflation, you see that people are just getting left behind“.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen HERE