US Median Age At Record High

Mortgage News July 5, 2023

The latest data from the U.S. Census Bureau, as cited by the New York Times, reveals that the median age in the United States has soared to an unprecedented 38.9 years.

The increase is significant, having previously reached 30 years in 1980 and 35 years in 2000. Similar to many other countries, the aging population of the United States is experiencing a faster growth rate compared to earlier generations, which can have significant implications for society and the economy.

The increase in median age has been attributed to a decline in birth rates, as noted by experts. The COVID-19 pandemic led to a significant drop in birthrates, but according to data from the Centers for Disease Control and Prevention (CDC), there has been a slight increase of around 1% in 2021. Nevertheless, fertility rates have generally remained low since the Great Recession when compared to previous generations..

Similar demographic shifts are occurring in other countries, including those with more extensive social welfare programs compared to the United States. Examples of such countries include Sweden, Norway, and Finland, which have national childcare subsidy programs in place.

In 2018, Japan claimed the highest number of elderly citizens in the world, surpassing any other country. Both rural and urban regions in Japan are experiencing an accelerated pace of aging, outpacing similar trends observed in other nations. This can be attributed to Japan’s sub-replacement fertility rates and notably high life expectancy.

Maine and New Hampshire are the states with the highest median ages in the country, standing at 44.8 years and 43.3 years respectively. On the other hand, Utah claims the title of the youngest state with a median age of 31.9 years, followed by the District of Columbia (34.8 years) and Texas (35.5 years).

This data highlights demographic trends favoring the reverse mortgage industry, with the aging U.S. population growing faster over the past decade. Senior homeowners have also amassed substantial home equity, reaching $12.39 trillion in Q4 2022 according to NRMLA/RiskSpan data.

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