How do reverse mortgages tie into rising demand for aging-in-place technology?

With America’s population set to age quickly in the coming decades, and with the pace of technological innovation also evolving by the day, it’s only natural that the two worlds collide in the form of aging-in-place technology.

The subject took the spotlight earlier this week at the National Reverse Mortgage Lenders Association (NRMLA)’s Western Regional Meeting in Irvine, California. Three aging technology experts spoke about the emerging demand for senior-centric tech solutions, the companies that are stepping up to fill the void and how reverse mortgage professionals can help their clients fund these types of home improvements.

High levels of home equity could be a detriment

The panel was moderated by Tara Ballman, executive director of the National Aging in Place Council, and featured insights from Danniel Fuchs, CEO of AgeTech Connect’s Los Angeles office, and Chris Spearman, chief strategy officer for ScaleHealth.

All three speakers are based in Southern California and spoke to what’s happening in some of the nation’s most expensive housing markets. As of June 6, HousingWire Data shows that median single-family home prices topped seven figures in the Los Angeles ($1.49 million), San Diego ($1.26 million) and Oxnard ($1.28 million) metro areas.

“There are people specifically here in Orange County where they bought the house, the prices have gone up around them, they can’t afford to move, they can’t afford to stay, and they also now can’t qualify for Medicaid,” Ballman said, referring to pending federal legislation that will cap the amount of home equity a person can hold to qualify for long-term care and support.

For senior homeowners who need to stay Medicaid eligible, drawing down their tappable equity through a reverse mortgage is a viable strategy that can fund home modifications and aging technology. But even as this presents both a sizable opportunity and a competitive necessity for reverse mortgage lenders, Fuchs urged the audience to ground their conversations with prospective clients in a holistic manner.

“Whenever you go to meet with a senior and their family, you definitely should be approaching this conversation from a different angle, and not just the financial tools,” Fuchs said. “You’re not there to talk about the reverse mortgage. I understand that’s your business, but when you start to talk like that, you put negativity upfront, instead of actually having that conversation of, ‘How do you see yourself aging?’”

Health worker shortage driving tech demand

The U.S. is already facing a shortage of health care workers that is expected to become more severe in the coming years. A recent NPR report pegged the anticipated shortage at roughly 258,000 doctors and nurses by 2038.

The panel noted that while technology will not eliminate these shortfalls, it can fill critical gaps — particularly for in-home care, where demand is expected to soar because there’s not enough space in nursing homes and assisted-living facilities.

“Technology is not a panacea; it’s not a perfect solution, but it will play a part in the shortages that we face for health care providers. Many of those shortages are being addressed at home because we don’t have enough places to put people,” Spearman said.

“We’re far beyond grab rails, wider doorways and safety infrastructure. … New technologies can really take the home from being a place of entrapment or burden to a place that can help you live longer, healthier, more satisfying lives.”

Six categories of age tech

The panelists outlined six broad categories of aging technology, along with several companies that serve seniors with targeted offerings. Reverse mortgage professionals with basic knowledge of the space and the ability to connect clients to resources may give themselves a leg up in originating a loan.

“It is not a mature market, so going out and finding the exact right thing for you, it actually can be beneficial, because in an emerging market, you can find players who want to rightsize for your use case,” Spearman said.

Passive home monitoring: While smart watches and other wearable technology are en vogue and relatively inexpensive, their usefulness is limited. Companies like Neteera, Vayyar and SafelyYou provide the ability to track a senior’s daily movements and sleep patterns while communicating with caregivers in real time. Systems can detect subtle declines and predict days in advance when a person needs to be hospitalized.

Companionship and communication: Loneliness is an epidemic among seniors, with former U.S. Surgeon General Vivek Murthy putting the physical effects of isolation on par with smoking 15 cigarettes a day. Companies like OnScreen and ElliQ seek to combat these issues with social connection platforms, AI companions and robotic pets. Loop Village is a virtual communication that offers personal check-ins and dozens of weekly activities.

Medication management: Companies like Keep Health, PatchRx and Hero Health aim to assist seniors with complex medication regiments. They can sort and schedule medications, track when they’ve been taken and alert family members when they’ve been skipped. This comes at a time when an estimated 125,000 Americans die each year due to non-adherence with prescribed medications.

Falls and physical function: Federal data shows that some 41,000 older Americans die each year due to falling. ZIBRIO, Age Bold and Nymbl Science are some of the tech providers aiming to reduce these numbers by tracking fall risk and creating personalized exercised programs that build strength to reduce risk.

Transportation and access: Even the best care plans cannot work if a senior is unable to get to their provider’s office. SilverRide and Kinetik offer nonemergency transportation for a variety of appointments and errands. GoGoGrandparent is a call-based concierge service for people who don’t have the manual dexterity to use a mobile app. Think of them as Uber for seniors.

Nutrition and social determinants of health (SDOH): For seniors who don’t have the ability to cook for themselves, Tangelo, ModifyHealth and CookUnity offer chef-based meal services and tailored nutrition plans for people with diabetes, heart and kidney conditions and more.