For years, experts have recommended that older adults consider senior living communities and shared housing arrangements, emphasizing benefits like safety, companionship, health support, and lower household costs. As the current housing crisis intensifies, it becomes more urgent to expand options for seniors and empty nesters, enabling better use of existing single-family homes.

Yet, many Baby Boomers prefer staying in their current homes. A Redfin study reports that nearly 80% of older Americans intend to “age in place,” often in single-family houses. Although mortgage-free living may seem cost-effective, expenses like maintenance, taxes, and transportation in suburban neighborhoods still add up. Regardless of financial reasoning, this choice limits the availability of family-sized homes for younger generations. In fact, nearly one-third of 3+ bedroom homes are owned by empty nesters, while only 14% are owned by millennials with children.

Limited availability and the high cost of family-sized housing are among the factors influencing younger generations to delay or even forego parenthood. Researcher Lyman Stone at the Institute for Family Studies has highlighted studies showing a correlation between larger housing and higher birth rates. While it’s challenging to determine cause and effect, some studies suggest that the shortage of spacious homes may be directly lowering birth rates compared to desired family sizes.

Amid these pressures, local governments are being urged to approve more single-family developments, often by rezoning farmland and green spaces. But is promoting suburban sprawl the answer? Such development has been a primary contributor to environmental concerns like climate change, loss of biodiversity, and costly, expansive infrastructure needs. An alternative approach would be to make shared housing and senior-friendly developments so attractive and affordable that empty nesters are inspired to transition out of single-family homes, opening them up for young families in need.

Home sharing could offer part of the solution. Programs that match individuals for co-housing can reduce costs for seniors facing heavy rent burdens—where housing expenses surpass half their income—while also providing the social engagement essential to well-being. According to HUD, home sharing is increasingly recognized as a valuable way to optimize the use of existing housing.

Local governments, however, are missing the chance to prioritize senior housing developments, as indicated in the Redfin report. This oversight also neglects the potential of revitalizing commercial centers impacted by e-commerce, remote work, and reduced foot traffic in city centers.

Many seniors would welcome a move to walkable communities over suburban, car-dependent areas. Senior-friendly housing in urban or downtown settings would bring them closer to cultural venues, healthcare, and other everyday services, as supported by research from the American Planning Association. Not only would such developments enhance quality of life for seniors, but they could also play a role in revitalizing struggling commercial centers.

Furthermore, demographic projections indicate that both birth rates and total population may decline over time, even in the U.S. under scenarios of low immigration. According to the U.S. Census Bureau, with low immigration, the total population could begin to decrease by 2043. Under the most likely scenario, the population is expected to peak at 370 million in 2080, declining slightly to 366 million by 2100.

While increasing family-sized housing might seem crucial amid today’s housing crisis, the real opportunity may lie in providing desirable senior housing options. These choices could reduce further suburban sprawl and help preserve agricultural and natural lands from unnecessary development.