Congress Tackles Housing Shortages, High Costs Pushing Older Adults Out of Homes

AARP is fighting for people 50-plus who want to stay in their communities as they age

Molly Snow,

Updated February 24, 2026

AARP

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Published August 18, 2025

/ Updated February 24, 2026

conceptual image for affordable accessible housing

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As older adults on fixed incomes contend with a nationwide housing shortage, many are finding it difficult to afford and maintain homes that also meet their needs as they age.

Outdated zoning laws, high prices and red tape limit the availability of diverse housing options, like duplexes and multifamily housing, that can be constructed to support older adults who want less space to maintain and cheaper prices.

That’s why AARP is advocating for expanded housing options for older adults by urging Congress to pass a series of bills that modernize land-use policies and boost affordable housing.

And recently, there’s been a breakthrough.

Both the U.S. House of Representatives and the Senate advanced sweeping bipartisan federal packages that include dozens of policies intended to improve rural housing, assist with home repairs, increase housing supply, streamline building requirements and expand financing options.

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“With so many older adults living on fixed incomes and facing rising housing-related costs, this bipartisan legislation offers real hope by making it easier to build and preserve housing that is affordable for older adults,” said Jenn Jones, AARP’s vice president of government affairs.

On Feb. 9, representatives overwhelmingly passed the Housing for the 21st Century Act, endorsed by AARP, which mirrors the Senate’s omnibus housing bill passed in October.

Lawmakers must now negotiate differences between the two bills and vote on a final version before it heads to the president’s desk for signature.

The House bill, first introduced in December, also includes a requirement for a government-led study on housing for older adults and those with disabilities. It also establishes an eviction helpline.

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“Today, more than 1 in 3 older households spend over 30 percent of their income on housing — an all‑time high — leaving many struggling to afford other necessities like food and medication,” Jones says.

Landmark bipartisan legislation gains traction

The Senate’s Renewing Opportunity in the American Dream (ROAD) to Housing Act and the House’s 21st Century Housing Act could lead to some of the most significant housing reforms in a decade.

The bills aim to make federal housing programs run more efficiently while also empowering states and localities to cut red tape around zoning to build and repair more affordable units.

AARP is backing many provisions that appear in the bills, including:

Updating and streamlining federal rural housing programs to make financing applications and approvals less burdensome
Creating modern guidance for state and local zoning rules that support a diverse supply of affordable housing and reform exclusionary land-use policies
Supporting public-transit-oriented affordable housing projects•
Loans and grants for low-income homeowners to address home repair needs

The early success of this legislative push offers hope to many of the 10 million older renters who are considered cost-burdened by housing expenses.

More than 70 percent of adults say they want to stay in their homes and communities as long as possible, according to the 2024 AARP Home & Community Preferences Survey. Yet expensive mortgages or rents, costs of home upkeep and property taxes remain some of the key reasons older adults expect to move, according to the survey.

And finding a new home isn’t easy: There are only 35 affordable rental homes available for every 100 extremely low-income renter households, according to the National Low Income Housing Coalition.

At the same time, people 50 and older are the fastest-growing population experiencing homelessness in the country, many for the first time.

“There is such a stereotype everywhere of who is homeless,” said Marcy Thompson, vice president of programs and policy at the National Alliance to End Homelessness. “We don’t think of older adults or our grandparents or parents, and we should because they’re the most at risk at this point.”

AARP and others recognize that affordable, quality housing is essential to healthy aging. Safe, accessible homes reduce fall risks and support in-home caregiving. Proximity to public transit helps older adults reach medical appointments, stay socially connected and commute to work if they don’t drive.

Pushing to expand the Low-Income Housing Tax Credit

AARP has also worked to support other changes in housing for older adults. We backed the expansion of the Low-Income Housing Tax Credit (LIHTC), which awards tax credits to homebuilders for building or renovating low-income housing. The One Big Beautiful Bill Act, signed into law by President Trump on July 4, expanded and made changes to the program.

New provisions, some taking effect as early as 2026, increase the number of tax credits states can award and lower the bond-financing threshold developers must meet. This means more projects will be eligible for the tax credit.

“The incentive provided through the LIHTC is critical because rental income and returns from investment in affordable housing are not always enough to cover project costs,” wrote Brad Gudzinas in an AARP Public Policy Institute brief.

Housing options for older adults are also often limited by restrictive local zoning regulations, wrote Bill Sweeney, AARP’s senior vice president of government affairs, in a July 28 letter endorsing the separate bipartisan Identifying Regulatory Barriers to Housing Supply Act.

The House and Senate packages include provisions to encourage cities and counties receiving federal Community Development Block Grants to adopt land‑use policies that affordable housing.

Nearly three-quarters of land in U.S. cities permits only single-family residences, according to the National Association of Housing and Redevelopment Officials.

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Molly Snow is a writer for AARP covering advocacy issues and state news. She also writes AARP's Today's Tips podcast. She previously worked at other news outlets, including Federal Times, McClatchy and Gannett.