Caught In The GAP: Older Adults in GAPS Households Face A Dual Burden

As the cost of living continues to rise, older adults in the United States are facing a growing financial challenge. For many, the burden of expensive housing combined with the high cost of care is creating an increasingly difficult situation. This is especially true for a older adults that are in a GAPS household. What Are GAPS Households? The term GAPS households refers to a group of older adults whose incomes are too high to qualify for government housing assistance, but not high enough to afford private care or assisted living. This leaves them stuck in a dangerous gap, unable to access the help they need. To better understand this, we need to break down the concept of Area Median Income (AMI). AMI is a measure used to assess the median income level in a specific geographic area. It helps determine eligibility for various assistance programs, including subsidized housing and financial support for care services.

People whose incomes fall below a certain percentage of the AMI may qualify for aid, while those above that threshold typically do not.

Let’s take a city where the AMI is $60,000 per year to illustrate how this works.

Maria, who earns $28,000 a year, falls below 50% of the AMI. She would qualify for housing assistance, making it easier for her to afford housing and care services. John, who earns $42,000 a year, falls between 51% and 80% of AMI. He is considered low-income but may not qualify for housing assistance. Despite his financial struggles, he is not eligible for the aid. Samantha, who earns $55,000 a year, is above 80% of AMI. She does not qualify for housing assistance at all but still finds assisted living and in-home care unaffordable, despite earning more than John and Maria. John and Samantha are part of a group which the Joint Center For Housing Studies of Harvard University calls GAPS households. These are households in the “gap” between “assisted living” and “public support.”

The Dual Burden Households in the GAPS category are not only financially strained by high housing costs, but they also face the additional burden of unaffordable in-home care.

In-home care is prohibitively expensive for most GAPS households.

The cost of daily care services (such as four hours of care a day, seven days a week) is simply out of reach for most people in this group. Only 8% of GAPS households can afford this level of care without dipping into their savings or assets.

A staggering 16% of GAPS households cannot afford any paid personal care assistance at all.

This crisis is expected to grow, as the need for in-home care increases with age. The rising housing costs only add to the financial strain. Nearly 28% of GAPS homeowners still carry a mortgage, leaving them with little financial cushion. About 25% of GAPS households are renters, and lack equity in their homes. Note: Data is from the  Joint Center For Housing Studies of Harvard University. The study has some limitations. It doesn’t include people who live with family or friends, or married couples, because their decisions about care and housing are often more complicated. The study only focused on older adults who live alone. Looking Toward the Future This issue is becoming increasingly urgent as people live longer, the cost of home care continues to rise, and housing expenses climb. With the aging population growing, more and more older adults will find themselves in the difficult position faced by GAPS households. It’s critical that we find solutions to support these households. If we don't, the financial burden on older adults and their families will only continue to grow, making it even harder for them to maintain their health, independence, and well-being.

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This article was made by  Elder Love USA.

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