A new survey from Longbridge Financial landed recently, and the numbers should give anyone with aging parents — or aging plans — a reason to pay close attention. According to the survey, the majority of senior homeowners say inflation and rising housing costs are actively squeezing their finances, even as they sit on historically large amounts of home equity. It’s a paradox that plays out every day here in the Phoenix metro: a 72-year-old in Sun City or Peoria with a paid-off home worth $450,000, living on a fixed income that hasn’t kept pace with what groceries, insurance, and utilities now cost.
Equity on paper doesn’t pay the electric bill in August.
What the Longbridge Survey Actually Found
The survey polled senior homeowners across the country and found that nearly two-thirds reported feeling financial pressure from inflation specifically — not just general economic uncertainty, but the sustained cost-of-living increase that’s been grinding away at purchasing power since 2021. About half said their housing costs had risen meaningfully in the past year, even among those who own their homes outright.
That last part surprises people. The assumption is that once you pay off your mortgage, your housing cost is fixed. It isn’t. Property taxes, homeowners insurance, HOA fees, and maintenance costs have all climbed sharply. Here in Maricopa County, homeowners insurance costs hit another record high — the average monthly premium now exceeds $200 nationally, and Arizona’s heat, monsoon season, and wildfire adjacency push local rates higher for many homeowners.
A handful of other findings from the survey stand out:
- More than 40% of senior respondents said they had cut back on spending in essential categories like food, healthcare, or utilities to manage housing costs
- Nearly 60% said they were concerned about their ability to maintain their home over the next five years
- A significant portion expressed interest in tapping home equity but said they didn’t fully understand their options
That last point is critical. These homeowners have a financial resource they’re not using — largely because nobody has explained it clearly.
The Arizona-Specific Pressure Points
The Phoenix metro creates some unique layers on top of national inflation trends. Property values in the Sun Belt surged aggressively from 2020 through 2022 — Chandler, Gilbert, and Scottsdale all saw appreciation above 30% in a compressed window. That was great for net worth on paper. But it also triggered property tax reassessments that are now showing up in higher bills, with some longtime owners seeing increases of several hundred dollars a year.
Energy costs are the other factor. Cooling a home in Arizona from June through September is genuinely expensive. A 2,000-square-foot house in Mesa or Glendale can run $400 to $500 a month in electricity during peak summer. For a senior household running on Social Security and a modest pension, that’s not a rounding error — that’s a significant line item.
And unlike most of the country, Arizona doesn’t have particularly strong property tax relief programs for seniors at the state level, though some counties and municipalities do offer limited freeze or deferral options. Multiple states have recently moved to expand senior property tax relief, and Arizona homeowners who feel left behind have good reason to pay attention to those developments.
What Seniors Are Doing — and What They Should Consider
Most senior homeowners facing this squeeze are doing one of three things:
- Cutting expenses — which often means deferring maintenance, reducing healthcare spending, or skipping home modifications that would make aging in place safer
- Leaning on family — which creates its own financial and relational stress
- Ignoring the problem — and watching savings drain slowly
What the Longbridge survey data suggests is that very few are proactively using their home equity, despite it being the largest asset most of them own. Options like reverse mortgages (Home Equity Conversion Mortgages), HELOCs, or home equity loans exist precisely for this situation — but awareness and understanding are low.
A HELOC, for example, lets a homeowner draw on equity as needed without making monthly principal payments if the line isn’t fully used. For a senior who owns their home free and clear, the math can be favorable. The same goes for cash-out refinancing in some scenarios, though current rates make that less attractive than it was two years ago. Understanding how to get equity out of your home without refinancing is worth a close read for any senior homeowner evaluating their options.
None of these tools are automatic solutions. They come with risks, costs, and eligibility requirements that vary by lender and loan type. But they’re real options, and too many seniors are leaving them completely off the table.
The Bigger Picture: Equity-Rich, Cash-Poor
This is the defining tension for older homeowners right now. Collectively, American homeowners are sitting on roughly $18 trillion in home equity — a record. Arizona seniors hold a disproportionately high share of that because of the appreciation we saw in the 2020–2022 cycle. But equity doesn’t generate income automatically. It sits there, unavailable, while monthly expenses continue to rise.
The mismatch between balance sheet wealth and cash flow is the real story behind the Longbridge data.
What to Do If You or a Family Member Are in This Position
Start with a realistic picture of the monthly budget — not what it used to be, but what it actually costs to run that household today, including insurance, utilities, HOA dues, and deferred maintenance that will eventually need to be addressed.
Then look honestly at the equity position. A no-cost or low-cost consultation with a HUD-approved housing counselor can walk through reverse mortgage pros and cons without any sales pressure. A fee-only financial planner with senior housing experience is another solid option.
If the numbers show that staying in the home long-term is genuinely unworkable, don’t wait until a crisis to explore alternatives. A planned downsize — into a smaller home in Surprise, Queen Creek, or another more affordable Phoenix-area zip code — can free up significant equity while lowering ongoing costs dramatically.
The worst outcome is a senior homeowner who has real financial options but runs out of time or savings before they use them. The Longbridge survey is a flag. The question now is what people do with it.