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There is a substantial difference between the housing that older Americans prefer and the housing that the market supplies. While market failures and seniors’ resource constraints explain part of this mismatch, zoning laws, Medicare and Medicaid reimbursement policies, and health law also loom large. Older Americans strongly prefer to age in place, in home-like environments. This chapter focuses on two types of housing that facilitate that manner of aging: Green House nursing homes and accessory dwelling units. The chapter discusses the substantial benefits for seniors who rely on others for care, and those who can live independently, in these respective kinds of housing. These benefits include substantial health and quality-of-life advantages as well as the ability to maintain connectedness within existing social networks. The chapter further examines the legal impediments to the proliferation of these housing types and the measures that some forward-looking jurisdictions are taking to facilitate their growth.
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