34% Of Households Headed By Someone 65 Or Older Are Housing Cost Burdened And Owners Still Paying A Mortgage Are Hit Far Harder Than Those Who Own Free And Clear

Picture two neighbors, both retired, both in their sixties or seventies. One finished paying off the house years ago. The other still sends a mortgage payment every month. According to new research from Harvard, those two households live in very different financial worlds.

A hand holds a paper near a pen and a calculator.

A blog post from the Harvard Joint Center for Housing Studies, published August 11, 2025, looked at households headed by someone 65 or older. Using 2023 data from the American Community Survey, it found that about 34% of those households were housing cost burdened. You can read the original on the Harvard JCHS site. Keep the dates in mind: the data is from 2023, and the blog went up in August 2025.

What cost burdened means

A household is generally called cost burdened when it spends more than 30% of its income on housing. That includes rent or mortgage payments and other housing costs. When that much of a paycheck or a retirement check goes to keeping a roof overhead, there is less left over for groceries, prescriptions, car repairs and everything else.

The big numbers

34% of households headed by someone 65 or older were cost burdened in 2023, which is over 12.4 million households.
That is up by nearly 2.3 million since 2019.
Among older owners overall, nearly 28% were cost burdened, up from 24% in 2019.
Among older owners with a mortgage, 43% were cost burdened. Among older owners without one, the figure was 19%.
Among older renters, 58% were cost burdened, which is 4.5 million households.

Look at that mortgage gap again. Owners who were still paying a mortgage were cost burdened at 43%, compared with 19% for owners who owned free and clear. The same age group, and more than double the share under strain. A paid off home does not make costs disappear, since there are still taxes, insurance and repairs, but it takes away the biggest monthly bill for many people.

Renters carry the heaviest load

The highest figure in the research belongs to older renters. A full 58% of them, about 4.5 million households, were cost burdened. For a renter on a fixed income, a rent change at renewal time can be hard to plan around, which is one more reason to read the lease early.

Why this matters if you are retired or close to it

The research gives a clear reason to think about housing costs well before you stop working. Here are some practical steps.

Add up your real housing cost. Count the mortgage or rent, property taxes, insurance, utilities and upkeep. Then divide by your monthly income. If the result is above 30%, you are in the burdened group the researchers describe.
Think hard about the mortgage. The gap between 43% and 19% shows how much a remaining mortgage can weigh on a household. If you are still paying one, look at whether a payoff plan fits your budget, and talk to a financial professional you trust before making any big move.
Ask about tax relief where you live. Many places offer property tax breaks or exemptions for older homeowners, but the rules differ by location. Your local assessor’s office can tell you what exists in your area.
Look for free housing counseling. Nonprofit housing counselors can go over your budget with you at no cost to start. Look for counselors approved by the federal housing department.
If you rent, plan for renewal day. Read your lease, note the date it ends and ask in writing how much the rent will change. Giving yourself time to compare options beats a last minute scramble.
Weigh the tradeoffs of moving. A smaller or cheaper home can lower monthly costs, but moving has its own costs. Compare the numbers on paper.

The bigger picture

The jump of nearly 2.3 million cost burdened older households since 2019 is the number that stands out. It shows that this is not a small or shrinking problem. The share of older owners who were burdened rose from 24% in 2019 to nearly 28% in 2023, so even people who own their homes have not been spared.

The lesson for anyone approaching retirement is simple: the home you live in is not just an address, it is the biggest line in your monthly budget. A mortgage free house changes the math in a way few other things can. And if you are not there yet, knowing the numbers early gives you time to make a plan.

None of this means a person with a mortgage is doomed or that a person without one is automatically comfortable. It means housing cost deserves a hard, honest look. Sit down this week, pull out the statements and figure out your own percentage. It is a small task that could help you decide what to do next.

Willow and Hearth