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Can Your Aging Parents Afford to Live in Your State?

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Most and least affordable states for elder care
At least in five Americans has to care for an older family member, but nearly two thirds of them don’t have a plan for paying the costs over the next five years. This has become astronomically expensive, so it’s important to consider what you and your aging parents will be able to afford.

Once your parents show signs that they might need help with daily activities, you’re faced with a difficult decision: Taking on their care yourself might involve more time and energy than you can spare, but the cost to hire help will blow your mind.

Get a load of these median monthly prices for different types of elder care, according to Genworth:

  • Private room in a full-service nursing home: $8,121
  • Semiprivate room in a full-service nursing home: $7,148
  • Private one-bedroom in an assisted living facility: $3,750
  • Adult day health care: $1,517
  • In-home health aide: $4,099
  • Home-maker services: $3,994

Most Affordable States

Perhaps there’s some consolation in the fact that prices vary from one part of the U.S. to the next, especially for the more involved services.

Apparently the state of Oklahoma has the most affordable options for adults 65 and over, according to Caring.com. After that comes Mississippi, Missouri, Wisconsin, Idaho, South Carolina and Tennessee.

At the opposite end of the spectrum, the most expensive states for senior care are North Dakota, Hawaii, New Jersey, Rhode Island and Wyoming. More details on affordability appear at the table at the bottom of this article — compiled by Caring.com — which ranks them based on the average cost of living and available elder care services.

Children Shoulder the Costs

These costs end up on the shoulders of adult children because of insufficient insurance coverage on elder parent’s end of things: Medicare only pays for a very small amount of long-term care, although Medicaid does make up for some of the difference.

While the solution to the situation is to get long-term care insurance, by the time people think of taking out this type of coverage, the premiums are already too steep to be affordable.

That means the costs of caregiving end up interfering or at least impacting the adult children’s ability to plan for their own financial future, according to a survey by Aging Care.

Sacrificing Self Care

Over a third of caregivers pay at least $300 a month to pay for their elder parents’ expenses, and more than half have sacrificed spending money on themselves in order to cover these costs.

What’s worse, the situation can impact caregivers’ current employment: one in four have either had to quit their jobs or been fired from them as a result of the caregiving. Nearly half are earning less money because of having to spend time caregiving.

In fact, 59% of Americans feel that having to care for two seniors is more challenging than caring for two toddlers, according to a survey by Northwestern Mutual.

The survey found that one third of caregivers feel sadness and anxiety all the time and nearly half feel tired. At the same time, just under half feel that it’s an opportunity to return the care given to them in childhood — and 81% say they would do it again if given the chance.

Part of what makes caring for older parents challenging is that even if you can afford to hire someone to do it for you, the parents still may have the ability to refuse the outsider providing the help, making it fall back onto the adult child.

Readers, do you currently care for an aging relative, and if so, how is it impacting your finances? What kind of plans do you have for your future finances?

Can Your Aging Parents Afford to Live in Your State?

State Overall Rank Cost of Senior Care Rank Cost of Living Rank Elderly Support Rank
Oklahoma 1 3 5 24
Mississippi 2 6 1 35
Missouri 3 12 10 22
Wisconsin 4 19 23 6
Idaho 5 14 4 31
South Carolina 6 4 21 26
Tennessee 6 8 6 37
Texas 6 9 19 23
Ohio 9 27 11 15
Arizona 10 22 3 30
Kansas 10 18 18 19
Alabama 12 1 9 46
Minnesota 13 31 26 1
Florida 14 13 28 18
Utah 15 2 20 39
Kentucky 16 25 2 35
West Virginia 16 28 14 20
Arkansas 18 11 31 21
Georgia 19 7 15 41
Louisiana 20 5 16 43
Pennsylvania 21 15 35 17
Michigan 22 23 8 37
North Carolina 23 10 17 45
Colorado 24 35 32 9
Nebraska 24 20 13 43
Oregon 26 36 37 4
Washington 26 37 38 2
New Mexico 28 21 24 33
Virginia 29 26 30 24
Nevada 30 16 34 31
Iowa 31 30 12 43
Indiana 32 29 7 50
Illinois 33 24 35 29
Maryland 34 33 42 15
South Dakota 35 17 26 48
Montana 36 32 21 39
Vermont 37 48 40 5
California 38 39 48 8
Massachusetts 38 46 46 3
Connecticut 40 43 47 7
Maine 41 49 39 13
New Hampshire 41 45 44 12
Delaware 43 41 33 28
New York 44 41 49 13
Alaska 45 50 45 10
North Dakota 46 34 25 47
Hawaii 47 47 50 11
New Jersey 48 44 41 26
Rhode Island 49 40 42 34
Wyoming 49 38 29 49

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10 Housing Markets That Are Still Affordable

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10 housing markets that are still affordable

Although home ownership has become less attainable in many parts of the country, there are still some housing markets that are still affordable, even in some popular locations.

Ultimately, choosing where to live is about more than just housing prices. You also want a reasonable number of amenities to make enjoying life easier. Additionally, strong job growth and salaries are also factors.

A look at statistics from The Federal Housing Finance Agency (FHFA) suggests that significant portions of the east and west coasts don’t have many affordable housing markets.

Any Housing Markets That Are Still Affordable?

The Pacific Northwest and California are known for being expensive. The same applies to New York, New Jersey, Pennsylvania, Massachusetts and Connecticut.

While some cities may be manageable with a strong salary, most wouldn’t consider them as part of the most affordable areas in the U.S.

However, there are still some housing markets that are actually affordable — here are 10 worth exploring.

El Paso, Texas

El Paso is very affordable. With a median home value of $122,301, the potential cost of a monthly mortgage payment may be lower than paying rent.

Cincinnati, Ohio

The median home value in Cincinnati has grown steadily over recent years, and it seems likely to keep heading up. However, at a median home value of $129,872, Cincinnati is still very economical in comparison to other similarly sized cities.

Columbus, Ohio

As of May 2018, Columbus’ median home value is just $145,659, even after rising 11% over the past year. Additional growth is likely, but a median sale price of around $150,600 means the area is currently quite reasonable.

Grand Rapids, Michigan

With median sale prices near $156,400, Grand Rapids is a strong option for professionals and families. Plus, the area offers a reasonable overall cost of living, making it even more affordable.

San Antonio, Texas

With a median home value of $166,377, San Antonio is very inexpensive, even in comparison to other major cities in Texas. Like many cities in the state, housing values rose significantly last year. Additionally, they will keep climbing, albeit slower, over the next year.

Fort Worth, Texas

Fort Worth is part of the Dallas-Fort Worth metro area. Considering the size of the city and metro area, a median home value of $183,838 shows the affordability of the area.

Madison, Wisconsin

Madison has a lot to offer, including job opportunities and a strong economy. While a median home value of $246,306 may seem high, it is far lower than many other metro areas of similar sizes.

Nashville, Tennessee

Nashville has seen some significant growth in the housing market, though the area is closer to a buyers’ market than a sellers’. Median home values hit $254,619, making it a great choice for prospective home owners.

Raleigh, North Carolina

Raleigh has become a popular destination for upwardly mobile professionals. While the median home value of $257,074 is one of the higher ones on the list, it is still very reasonable in comparison to most of the West Coast and New England.

Austin, Texas

Austin has a median home value of $344,325. Considering Austin is a capital city full of opportunity, that’s a relatively cheaper housing market.

What You Can Expect From These Housing Markets

All of these areas have reasonable housing prices, particularly when compared to similarly sized cities in the Pacific, Middle Atlantic, and New England regions.

Additionally, many of them are experiencing job growth, a sign of strong economies. Many companies call these cities home too, so there could be a significant number of employment opportunities to be had.

Generally, by selecting a low-cost area with a robust economy, your housing investment may be more secure. Not only could you score a great deal on a home, but it may also appreciate in value over the next few years.

It’s important to note that, in comparison to higher cost cities, the average salaries in some of these locations may appear low on the surface. However, since the cost of living is more reasonable, your dollars may go further.

Ultimately, if you’re looking for affordable housing markets, all of the cities above are excellent options.

How affordable is your local housing market — and have you considered moving somewhere cheaper? Please tell us about it by posting in the comments section.

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How To Afford Expensive Things

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expensive cars

On another finance site that I frequent, a poster asked for tips on how to afford an expensive car without incurring super-huge payments. She wanted to know if there were any “out of the box” ways to magically afford such an item. Bottom line: She wanted a car that her income couldn’t comfortably cover and she was hoping that there was some magic bullet that would enable her to afford such a thing.

Of course, it wasn’t long before the other posters jumped all over her and, in a way, rightfully so. That post was indicative of what has gone wrong in many people’s financial perspectives. Many people feel entitled to own anything, no matter how expensive or out of line with their incomes. There is a feeling that everyone can “afford” anything, as long as they pull the right strings or uncover the secrets that everyone else seems to know.

Unfortunately for this poster and for everyone else, the truth remains the same. There are no magic bullets, shortcuts, or secrets to affording big ticket items. If you want something that is beyond your current means, there are sensible and stupid ways to go about getting that item. Too many people opt for the stupid ways, to the detriment of their finances.

Go into Debt (Stupid)

This is what many people choose, but it’s the least advisable. Doing so means that you can’t really “afford” the item, only that you managed to find someone to lend you the money to pay for it. You still have to make payments that likely stretch your finances to the limit. All you’ve managed to do is acquire the item; you haven’t made it any more affordable as you’ll find out when the repo man shows up when you’ve missed a few payments.

Let Someone Talk You into “Affordability” (Stupid)

Too many people want to hear that there is a magic bullet that will let them get the item they desire. This is how people get sucked into payday loans, loans that are too long, loans that carry adjustable payments, and anything else with a ton of fine print and “gotchas.” Don’t listen to salespeople or friends who tell you that they “can have you in that car (boat, RV, etc.) even if you have no income.” They can’t make the item any more affordable; they can only find sketchy ways to make you think you can afford it. You still can’t afford it.

Take Out a Loan for a Ridiculous Amount of Time (Stupid)

Some people afford expensive cars and houses by taking out loans that stretch for eight to ten years (this is not how you want to finance a car) or up to forty years for a home in order to bring the payments down to “affordable” levels. This only adds to the overall cost of the item in the form of excessive interest. Again, you haven’t managed to afford the item, you’ve only found someone who is willing to profit from the insane amount of interest you’re willing to pay.

Give up Everything to Free up Money (Stupid or Sensible, Depending on Your Priorities)

If you want to free up the money for a big ticket item, you can cut everything else in your life to the bone. You can quit going out to eat, pull the kids out of activities or private school, sell anything not nailed down, and give up vacations. If you give up all the extras in life, you might be able to “afford” that pricey car. But only you know whether it’s worth it or not. If you want this item more than anything else in your life, maybe it’s worth it. If, however, you want to have some other fun and experiences, it’s a stupid idea.

Bring in Extra Income (Sensible)

If you have your heart set on a super expensive item, you’d do well to find a way to bring in more money to pay for it. Take a second job, get a raise, or find some part-time work. With the extra money you may be able to finally pay for that item you want.

Save for the Item (Sensible)

Most people want instant gratification which is why this strategy is rarely used. Saving for a big ticket item requires years of discipline and focus but once you have the money saved to pay cash, you don’t have to worry about “affording” the item. You can pay cash for it upfront and it’s yours.

Do without the Item (Sensible)

Chances are you don’t “need” an expensive car or home. You can probably find something that works for you at a much lower price point. Many items you don’t even need at all. You can do your finances a big favor by just not getting the expensive item at all, or finding a cheaper substitute.

Buy Second-Hand (Sensible)

If you just have to have a certain model of car, boat, RV, etc. You can cut the price down by scouring the used market until you find something that you can afford. It may have more miles than you want on it, or not be the exact color you had in mind, but it’s also going to be thousands of dollars less than a brand-new model.

The only way to afford expensive items is to have the money to pay for them. That means making a bigger income, saving up, or cutting out other things that you don’t value as much. If something costs far more than you have, you can’t magically make it fit within your current budget, no matter how entitled to that item you may feel that you are.

(Photo courtesy of dennis and aimee jonez)