Cottage Senior Living

What Is Cottage Senior Living?

A cottage simply refers to a “small house.” When you tack “senior living” to the end of it, you’re left with older adults who choose to live in small houses during their retirement years.

The cottage might be a small single-family house that you live in because you want to save money and have less space to maintain. Think downsizing!

Or it might be a cottage community within a continuing care retirement community or assisted living campus.

In some areas, seniors might choose to participate in a state-sponsored program that places a temporary “elder cottage” in the backyard of a senior’s friend or family member.

In all scenarios, cottage senior living is a way to downsize your living space and remain as independent as possible during your later years.

What Are Cottage Senior Living Communities?

Some older adults choose to live in cottages in neighborhoods or communities where other seniors also live in cottages. Many are located within continuing care retirement communities, independent living campuses, or assisted living campuses. Each older adult or couple lives in their own cottage yet enjoys shared amenities like tennis courts, swimming pools, a dining hall, landscaping, and scheduled activities.

Benefits of Cottage Living Communities

Cottage living communities share many of the same benefits as retirement communities or independent living communities, including:

• Residents enjoy shared access to amenities and services they might otherwise not be able to afford, such as swimming pools and fitness centers.
• Cottage communities provide an opportunity for residents to meet other retirees and build friendships. This helps foster community and prevent the feelings of isolation that many older adults deal with in retirement.
• Spending time in a close-knit community is reminiscent of communities they lived in years ago, which can be comforting as you age.
• Cottage community life is safe. Neighbors watch out for one another. Crime is generally low, which is appealing to people of any age.
• In some communities, you’ll have access to help with activities of daily living as your care needs increase.

Drawbacks of Cottage Living Communities

While cottage senior living communities offer many benefits, there are also some drawbacks to consider.

• Cottage living is similar to living in a regular home, so seniors need to be active and fairly independent.
• If you need nursing care or assistance with activities of daily living, this type of housing may not be the best option for you.
• Cottage communities are often close-knit, which can be attractive to some retirees and unappealing to others. It all depends on what style of senior living you’re searching for.

How Much Do Cottage Living Communities Cost?

The cost of cottage communities all depends on how extravagant you want your home and amenities to be. Do you want multiple bedrooms, a private garage, and a luxurious interior? Expect to pay more for it. On the flip side, if you want to lower your living expenses and downsize your living space, you can find options in the $100,000 range.

Some communities let you purchase the home outright with cash or a mortgage. If you sell a larger home and downsize to a cottage, you might not have a mortgage payment at all. You’d only owe a monthly fee for community amenities and utilities.

Other cottage communities only permit renting, so your monthly fee would include rent, community fees, and utilities.

Things to Ask When Considering Senior Cottage Communities

Moving anywhere is a big deal. Before you start searching for a senior cottage community, consider the following:

• Can I afford this? Some cottages are just as expensive, if not more, than regular homes. If your goal is to reduce your expenses, make sure you’re choosing a cottage accordingly.
• Do I like living near people? If you like your privacy and don't like having that cozy neighborhood atmosphere, then a senior cottage community might not be for you.
• What do I need help with? Cottage community living requires a certain level of activity and independence. If you need medical attention or can't perform daily tasks alone, you should rethink cottage living.
• What are the average utility expenses? If you are considering cottage living, visit a cottage community and talk to residents or employees. Ask about typical monthly expenses to see if it’s something you can afford.

If a senior cottage community doesn’t feel like the right community, elder cottages are another option to consider.

What Are Elder Cottages?

Besides your basic cottage living community, elder cottages are also gaining in popularity. Also known as “granny flats,” these are small cottages placed in the side yards or backyards of a host family (typically a relative or close friend). These cottages are self-contained and energy-efficient. They typically have their own entrance, bathroom, living space, and cooking facilities. Most importantly, elder cottages help older adults maintain their independence by reassuring them that someone is nearby to help if needed.

Private Elder Cottages

Families can set up elder cottage arrangements privately; for example, a grandparent can buy and place a tiny home or manufactured cottage in their adult kid’s backyard. This living arrangement might also be called granny pods, prefab backyard elder cottages, or tiny homes for seniors.

Elder Cottage Housing Opportunity (ECHO) Units

The Department of Housing and Urban Development (HUD) also sponsors elder cottage housing opportunity (ECHO) units. These are small, self-contained modular units placed on a family or friend’s property.

States can use HOME Investment Partnerships Program funds to purchase and install ECHO units for qualifying low-income seniors.2 States and counties can set additional eligibility requirements, such as a minimum age or disability status.

An ECHO unit remains in place until the senior’s living requirements change. Then, it’s relocated to the home of a new host family. Keep in mind that ECHO units aren’t widely available. Search for ECHO senior housing in your state to see if your state has an ECHO program.

Benefits of Elder Cottages

Elder cottages offer a number of benefits to the older adults and their loved ones:

• They are designed with seniors in mind — no stairs, walk-in showers, wide doorways, etc.
• You can safely live near your loved ones and receive help while you still retain your autonomy.
• Families can spend more time together without needing to travel or arrange transportation so their aging loved one can participate in family milestones and events.
• The close proximity reduces some of the stresses associated with caregiving for the caregiver(s) and the care recipient(s).
• It’s a more cost-effective solution than expensive home modifications, a move into a larger home with in-law quarters, or a long-term nursing home stay.
• Access to an affordable ECHO cottage can help older adults age in place for longer without needing to move into an assisted living facility or nursing home.
• An ECHO is a temporary structure, so the homeowner will not incur any additional taxes.

Drawbacks of Elder Cottages

As with any type of senior living, there are some drawbacks to consider with elder cottages:

• The arrangement works only if you have a family member with enough land to accommodate the cottage.
• You must meet low-income eligibility requirements if you’re hoping to participate in an ECHO program.
• Some states will not allow granny pods or elder cottages in the backyard of another residence.
• Even in communities that do allow granny pods, securing zoning for a permanent, private elder cottage can be difficult.

How Much Do Elder Cottages Cost?

Private elder cottages range in cost, depending on the style, location, and how complicated installation is. Expect to pay between $40,000 to $125,000 upfront for the cottage and installation.5 Granny pods, tiny homes, and elder cottages need to be purchased upfront or with a non-mortgage loan.

On top of the purchase, older adults and their families need to make decisions about utilities. The cottage will connect to the main residence, causing an increase in utility usage, like electricity.

Families who participate in an ECHO unit program have different expenses. The state or county may cover some costs. Residents pay an income-based rent as determined by the state or community. For example, in Pennsylvania, a senior would pay no more than 30 percent of their monthly income to live in a cottage.6

Things to Consider Before Deciding on Elder Cottages

Moving in with family — even just into their backyard — is a change of pace for everyone. Consider the following before making a decision:

• Family dynamic: If your family members drive you crazy, maybe living in their backyard isn’t the right move. Attempt some trial runs — perhaps a weeklong or monthlong stay — before committing to purchasing an elder cottage.
• Expectations and boundaries: Sit down with your loved ones and talk through expectations. How much help do you need from your family? How much help can they provide? Discuss privacy expectations too.
• Finances: Figure out who’s paying for what. Can you afford a private elder cottage on your own, or will your family assist with the cost? Will you contribute to utility expenses? How will that be calculated?
• Zoning: Research zoning laws in your area to make sure adding an elder cottage is possible.