Prisoners of their own luxury – the concept of Urban Senior Homes as a solution to the municipal housing problem

An aging society is increasingly confronted with new everyday challenges. Old age itself can at times be burdensome and public healthcare is unable to keep up with the needs of a rapidly aging patients. This confronts seniors with even greater challenges. Many elderly people live alone, barely make ends meet and are in clear need of support with daily routines, such as shopping. Mundane situations suddenly become so troublesome that they hinder daily functioning.

Seniors have access to several forms of support. These include, among others, social welfare homes, day-care centres, universities of the third age and intergenerational activity centres. All of these forms of support, apart from social welfare homes, require a certain level of activity from seniors, forcing them to leave their homes and interact with other people. Yet, there are individuals who lack the motivation, willingness or simply the ability to participate in such activities. What about them? They either remain within their four walls or spend the rest of their lives in social welfare homes.

From a demographic perspective, our society has undergone structural changes over the past few decades. According to data published by the Central Statistical Office, in 1990 approximately 30% of Poland’s population was of pre-working age, while just under 13% were of post-working age. By 2010, the number of people in pre- and post-working age had equalized and over time the number of those in post-working age increasingly exceeded those in pre-working age. According to 2024 data, as much as 23.8% of the population were people of post-working age (almost one-quarter of society), while the youngest accounted for barely 18%. This structure is not promising, as the overall population of Poland is systematically declining, while the number of retirees and pensioners remains at a similar level. According to Statistics Poland (GUS) data, the number of retirees and pensioners in the period from 1999 to 2024 decreased by only 0.72% and currently stands at 9 384 579 (yes, almost 10 million persons).

Recent months have been a time of political turbulence. We all witnessed the fight for the office of the President of the Republic of Poland. During the heated election campaign, all candidates raised the issue of social and municipal housing. An increased number of municipal apartments would certainly support also seniors, but it does not solve the problem of loneliness or equal access to opportunities for activeness among seniors. The pool of municipal apartments is distributed among various social groups, such as people with extremely low incomes, people with disabilities or graduates of care facilities. This is a form of aid targeted at those most in need, which means that seniors, who already own their own apartments, usually do not qualify. Is there, then, no solution for the large group of seniors who remain in the shadow of their daily needs, overwhelmed by the necessity of maintaining both their apartment and themselves at a minimally decent standard?

One of the currently available options is the so-called reverse mortgage. This solution involves transferring the ownership right to a property to a bank or institution in exchange for a lifetime financial benefit. The main providers of such contracts are mortgage funds, which by the end of 2024 administered only 403 contracts, with just 18 new ones added that year. However, concluding a reverse mortgage agreement with a non-bank institution involves risk, as this area is not regulated by the state. Over the long term, a contract with a bank would be a better solution, but none of the leading banks in Poland currently offer reverse mortgages.

In recent months, a draft law on senior tenancy has been introduced. The idea assumes that a senior owning an apartment located on the third floor or higher in a building with no elevator could apply for a municipal apartment situated on lower floors, or higher floors in a building equipped with an elevator. The condition would be to lease their apartment to the municipality, which would then temporarily sublet it to people waiting for social housing. This programme gives seniors the opportunity to improve their living conditions and reduce barriers that hinder participation in social life, but it does not increase the number of apartments available to the city or municipality. Occupying municipal apartments by seniors would generate longer queues for social housing. Moreover, there is the risk that a senior might want to return to their own apartment (since it would only be a rental agreement), which would create the need to relocate tenants and restore the senior’s apartment to at least its original condition.

A new initiative currently being tested is senior cohousing. This solution assumes housing several unrelated individuals in one municipal apartment. The idea is directed at elderly people who, for various reasons, are no longer able to function in their current place of residence. Shared housing may be a remedy for daily life problems, but it will not be an ideal solution for all seniors. A lack of privacy and indirect dependence on initially strangers may not inspire enthusiasm among many of them. The idea is worth considering, but only as a complement to social policy in situations, when a city or municipality has a sufficiently large pool of social housing. Otherwise, it is worth asking, whether such a large apartment would not be more urgently needed by a large family in a difficult situation.

All of the above-mentioned solutions do not increase the number of apartments available to the city/ municipality and present seniors with challenges on many levels.

The idea of Municipal Senior Homes (MSH) is an original concept directed at seniors, who own their own apartments but need help with daily life. This concept assumes that, as part of city/municipality initiatives aimed at increasing the number of municipal apartments, residential blocks for seniors would be built, where round-the-clock nursing and basic medical care would be available, as well as daytime activities would be organized for seniors. A block built under MSH would resemble those developed by private developers, except that common areas would be adapted for people with disabilities – nothing new, since public facilities such as clinics, offices and other such institutions are already built under such requirements. On the ground floor of the building, commercial and service premises would be located to meet the basic needs of elderly residents. This would generate rental income for the city or municipality. The building would include a primary care physician’s office, where any resident could go if needed. The areas designated for organized activities could be used by institutions such as universities of the third age or activity centres without the need to rent private space.

On what terms would a senior receive such an apartment? The calculation would be simple: an apartment for apartment. A senior, who owns his own apartment, could enter into an agreement with the city or municipality, under which he or she would have lifetime use of an apartment in the Municipal Senior Home in exchange for the property rights to the apartment they currently own.

What are the benefits of such a solution? There are several:

• The city or municipality gains a pool of apartments (those vacated by seniors) that can be allocated for social purposes, including assistance for large families. Seniors often own multi-room apartments that are too large for their needs. As part of the “exchange,” they would receive a smaller apartment, but with a “support package,” i.e. with access to a physician, a nurse and educational and social activities all in one place. When building Municipal Senior Homes, a minimum and maximum usable area of such apartments would be set, e.g. between 30 and 50 sqm. Naturally, most apartments previously occupied by seniors will require renovation or refreshing, but the costs would be lower than constructing equally large new apartments within municipal housing projects. Moreover, the city or municipality becomes the owner of the property. According to forecasts by the Statistics Poland (GUS), by 2050 seniors will account for approximately 40% of the population. Such dynamics mean that the pool of social housing suitable for seniors should systematically increase. If the city or municipality were to build social housing under the current model, the pool of available apartments would be divided among various social groups requiring such assistance.
• The city or municipality becomes directly involved in helping seniors, who are currently left in the shadows. This is support that genuinely improves the seniors’ quality of life, as they are not left without care, enjoy the comfort of living in their own apartment rather than a room in a social welfare home and therefore can retain their independence and autonomy in managing their time. Forms of activity available in community rooms could bring generations together and provide seniors with spaces that were previously beyond their reach. New opportunities would encourage seniors to engage in social events.
• Providing round-the-clock basic medical and nursing care would give seniors a sense of security and ensure assistance in emergencies.
• The cost of maintaining an apartment in a Municipal Senior Home would be lower than in their current residence, both due to the smaller floor area and lower rent compared to housing cooperatives or homeowners’ associations.
• The apartments taken over by the city/municipality would be located in different parts of the city/district, thus avoiding exclusion and marginalization of people using municipal housing in a single concentrated area.
• Within a single investment involving the construction of a Municipal Senior Home, support would be provided to both seniors (who would receive a lifetime right to use an apartment in the Municipal Senior Home) and people in need of municipal housing (who would be allocated the apartment previously owned by the senior).
• Ultimately, a smaller percentage of elderly people would be excluded from social life, their quality of life would improve and this could translate into greater activity on their part and at the end – the better health condition.
• An agreement concluded with the city or municipality would guarantee the security of such a solution, significantly reducing the scale of fraud against seniors.

Demographic changes occurring over the years translate into new aspects that need to be addressed in social life. Adapting to these new realities is not an easy task, particularly from an economic perspective. One issue that has so far been treated marginally is the situation of elderly people, who are unable to live with dignity while supporting themselves and maintaining a home on a modest pension. Another issue is the promise to build a larger number of municipal apartments that would support those most in need. A partial remedy to the above-mentioned problems could be the concept of Municipal Senior Homes. This concept would benefit both seniors, who would gain a more comfortable living space, and municipalities/cities, which would acquire apartments that could be used for communal purposes. The non-concentrated distribution of residents occupying municipal apartments taken over under an agreement between the city/municipality and the senior would blur social disparities among residents. Existing forms of support for seniors overlook those, who, for various reasons, are prisoners of their own apartments. Relinquishing the right to their property in exchange for a lifetime opportunity to use an apartment in a Municipal Senior Home would solve many of the problems elderly people face today.

Through a single investment, cities and municipalities would gain access to secondary-market apartments with a larger floor area than newly built municipal apartments under current practices. The secondary use of apartments within Municipal Senior Homes over time would allow the city/municipality to manage a greater number of apartments than the actual number and size of those built under the programme. A simple calculation illustrates, how cost-effective this solution could be. In 2024, a total of 2 293 apartments were completed in cooperative, municipal, social rental, and company housing. If we assume that 2 200 such apartments will be added annually, then by 2040 the pool will increase to 35 200 units. If the same number of apartments were built under Municipal Senior Homes (MSH), then in addition to 35 000 apartments, the city or municipality would also have access to additional apartments acquired from seniors. Assuming that in the initial phase of the project, half of the MSH apartments would be occupied by seniors, the pool of municipal apartments would increase by over 16 000 units.

The costs associated with a senior’s use of an MSH apartment (i.e. rent) would be determined by the municipality/city. Currently, the social rent rate in Warsaw is PLN 2 per 1 sqm. of usable floor space, while the base rate for apartments included in the city’s housing stock is PLN 13.08 per 1 sqm. For comparison, the average cost borne by an owner in a housing community amounts to PLN 16 – 20 per 1 sqm. of usable floor space. Senior would cover utility bills as in their own apartments and rent would be charged at the rate established by the city/municipality.

For seniors, the benefit of living in an MSH would be peace of mind about their future and personal safety, while for municipalities and cities, it would mean access to a greater number of apartments for social purposes. The above concept may raise many doubts and generate dozens of questions. The most important, however, is whether such a solution would spark interest among the beneficiaries.

Agata Wróblewska
Maintenance and Development Specialist
Certified Property Appraiser (License No. 8247)