Assisted living statistics

National senior living statistics

About 1.4% of seniors in the U.S. live in assisted living facilities. The average cost of assisted living in the U.S. is $5,030 per month. For context, the estimated median monthly cost for a 44-hour-a-week home health aide is roughly $4,500.

An additional 4% of seniors live in nursing homes. The median cost of nursing homes nears $9,000 per month for a private room, making assisted living an affordable and popular choice for seniors who need more than just care during the day. As of 2020, California has approximately 1,230 nursing facilities, the most of any state in the country.

Assisted living is more affordable than other senior care options, but it’s still a major expense. However, not everyone appropriately budgets for elder care plans.

Common conditions of assisted living residents

• High blood pressure
• Arthritis
• Diabetes
• Depression
• Heart disease
• Alzheimer’s or dementia

Features available across assisted living facilities

• Pharmacy access
• Nutritional guidance
• Physical and occupational therapy
• Nursing care
• Hospice care

Assisted living demographics

Assisted living facilities provide housing to aging residents with varying levels of independence. For some, this can mean taking care of their own hygiene needs while nurses manage their medications. Other residents may need assistance with everyday tasks and more intensive medical treatment. In addition to Alzheimer’s and dementia, some of the most common conditions of assisted living residents are high blood pressure, arthritis and heart disease.

• About 70% of residents have memory impairments. Estimates derived from national data indicate that 7 out of 10 residents have some form of cognitive impairment. About 42% of residents have moderate to severe memory loss, and an additional 29% of residents have mild impairments. Memory care is more expensive than traditional assisted living — usually 20% to 30% more than the average.
• The average length of a stay in an assisted living facility is 22 months. Approximately 60% of residents will move out of assisted living to transition to nursing homes or other types of senior care.
• The majority of residents are women. About 70% of assisted living residents are women. This discrepancy is because many women outlive their spouses, leaving them without in-home support and in greater need of the care assisted living facilities provide.
• The majority of residents are in their 80s. Though most facilities allow patients as young as 65, 50% of residents are 85 and over, and 31% are between 75 and 84.

Assisted living data trends and predictions

The assisted living industry is expected to accommodate many more residents in the next 10 to 20 years. Here’s a breakdown of the state of assisted living and what we can expect over the next two decades:

• The number of people ages 65 and over will grow by 42%.
• The number of people ages 85 and over will grow by 111%.
• About 986,000 new assisted living units will be necessary.

The reason for this growth: Baby boomers are currently 59 to 78 years old and represent 20.58% of the population. This is a sharp increase for this demographic — 20 years ago, the boomer generation made up only about 16.3% of the population.

This change in the U.S. aging population will likely create an increased demand for assisted living care. According to research from the National Investment Center for Seniors Housing & Care (NIC), the U.S. will need 156,000 new facilities by 2025, over 800,000 new facilities by 2030 and 986,000 by 2040.

Assisted living facility costs will continue to increase

As the assisted living industry is expected to grow, so are its costs. In Genworth’s annual Cost of Care Survey, assisted living facility rates increased by 4.65% in 2021 to an annual national median cost of $54,000 per year. With rising inflation, the estimated median cost of assisted living is $60,361. Notably, in just over ten years, assisted living costs have risen by 52.5% from $39,600 to $60,400.

Research from the peer-reviewed journal HealthAffairs suggests that these rising costs paired with other generational factors could make assisted living care out of reach for a growing number of middle-income people.

“Future seniors have lower overall savings and are less likely to have pensions, as defined-contribution retirement plans have grown,” the study states. “This trend may increase pressure on the already decreasing number of familial caregivers per senior.”

Assisted living chains and franchises will increase

Fifty-six percent of assisted living facilities are chain-owned, including big companies like Welltower, Ventas and Brookdale Senior Living. These are often larger communities that serve more than 100 patients per location. There are also many local assisted living providers of varying sizes across the country.

Possible staffing shortages are ahead

The assisted living industry will likely face challenges in meeting the projected growth, specifically regarding staffing needs. This year, every U.S. state experienced a shortage of care workers, and 43 states had permanent closures of care facilities, such as group homes and assisted living facilities. Experts from the Senior Living Innovation Forum suggest that better pay, benefits and opportunities for advancement can improve employee retention to ensure there’s enough staff to meet the growing need for these facilities.

More specialized memory care options will be available

Facilities dedicated to memory services are becoming an increasing component of long-term care. Eighteen percent of communities have units, wings or entire floors dedicated to serving patients with dementia, Alzheimer’s disease and similar conditions. Eleven percent of residences exclusively serve these patients.

Memory care-specific communities are increasingly popular because their caregivers have been trained to care for patients with dementia, Alzheimer’s disease and cognitive loss. Additionally, many facilities offer specialized care and activities for people with dementia to stimulate cognition.

According to data from the National Center for Health Statistics, the percentage of residents with Alzheimer’s disease and dementia was higher at smaller facilities: There were 51% of residents with Alzheimer’s or dementia in communities with 4 to 25 beds, 47% in communities with 26 to 50 beds and 39% in communities with more than 50 beds.

Assisted living facility statistics by state

The financial burden of assisted living varies by state. It ranges from a median monthly price of $3,300 in Missouri to $7,800 in Washington, D.C. Below, compare the total number of facilities and the average cost of assisted living by state.

Currently, Medicare covers up to 20 days of assisted living care Most state Medicaid programs cover some assisted living costs, but the amount and days covered vary by state. Most residents need other financing methods beyond just insurance.

Bottom line

As the senior population continues to grow, the need for more assisted living facilities is likely to increase drastically. Though assisted living is a more affordable alternative to nursing home care for many older adults, the cost of these facilities is also expected to rise as the industry expands.

No matter the size of the facility, you should always confirm the residence is licensed. The level of care needed is also an important factor in choosing a facility — smaller units may have relationships with doctors and local hospitals rather than on-call medical professionals.

References

1. “Facts & Figures.” American Health Care Association and the National Center for Assisted Living (AHCA/NCAL). Evaluated Jan. 8, 2024. Link Here
2. “Dementia Special Care Units in Residential Care Communities: United States, 2010.” U.S. Department of Health and Human Services. Evaluated Apr. 28, 2021. Link Here
3. “Residential Care Facilities: A Key Sector in the Spectrum of Long-term Care Providers in the United States. Variation in Residential Care Community Resident Characteristics, by Size of Community: United States, 2020.” Centers for Disease Control and Prevention (CDC). Evaluated Jan. 10, 2024. Link Here
4. “Dementia Prevalence And Care In Assisted Living.” Evaluated Jan. 10, 2024. Link Here
5. “Skilled nursing facility (SNF) care.” Medicare.gov. Evaluated Jan. 10, 2024. Link Here
6. “The Forgotten Middle: Many Middle-Income Seniors Will Have Insufficient Resources For Housing And Health Care.” HealthAffairs.org. Evaluated Apr. 28, 2021. Link Here
7. “Cost of Care Survey.” Genworth.com. Evaluated Jan. 9, 2024. Link Here
8. “Cost of Care Survey: Ranked State Data Tables.” Genworth.com. Evaluated Jan. 9, 2024. Link Here
9. “Nearly 1 Million New Senior Living Units Needed by 2040.” Senior Housing News. Evaluated Jan, 10, 2024. Link Here
10. “2023 National Population Projections Tables: Alternative Scenarios: D: Projected Population by Age Group An Aging Nation: The Older Population in the United States.” U.S. Census Bureau. Evaluated Jan. 8, 2024. Link Here
11. “Assisted Living: A Growing Aspect of Long Term Care.” National Center for Assisted Living (NCAL). Evaluated Apr. 28, 2021. Link Here
12. “The Rising Cost of Senior Care in America.” HowMuch.net. Evaluated Apr. 28, 2021. Link Here
13. “Argentum list of largest senior living providers adds 10 for 2020.” McNightsSeniorLiving.com. Evaluated Apr. 28, 2021. Link Here
14. “What Is Memory Care And How Much Should It Cost?” AssistedLiving.org. Evaluated Apr. 28, 2021. Link Here
15. “Consumer Price Index, 1913-.” Federal Reserve Bank of Minneapolis. Evaluated Jan. 9, 2024. Link Here
16. “Facts and Statistics. Long-Term Care Providers.” California Association of Health Facilities (CAHF). Evaluated Jan. 9, 2024. Link Here
17. “Health, United States — Data Finder” Centers for Disease Control and Prevention (CDC). Evaluated Jan. 9, 2024. Link Here
18. Assisted Living Costs by State 2024. World Population Review. Evaluated Jan. 9, 2024. Link Here
19. “How Much Future Senior Housing Inventory is Needed to Meet Demographic Demand?” National Investment Center for Seniors Housing & Care (NIC). Evaluated Jan. 10, 2024. Link Here
20. “The 50 largest U.S. seniors housing real estate owners and operators.” Americans Seniors Housing Association (ASHA). Evaluated Jan. 10, 2024. Link Here
21. Rubin, A. “Aging America Faces a Senior Care Crisis,” Axios. Evaluated January 10, 2024. Link Here
22. “The US Population Is Aging,” Urban Institute. Evaluated Jan. 10, 2024. Link Here