Assisted Living Statistics: Industry State and Future Trends

Are you prepared for the likelihood that you or a loved one will require assisted living?

• A staggering 7 out of 10 individuals needing some form of assistance later in life, the aging population is rapidly changing the landscape of elderly care.
• Whether you’re seeking a comfortable and supportive residential option, or navigating the complexities of nursing homes and related industries, staying informed is paramount. 

In this article, we’ll delve into projected trends in life expectancy for assisted living residents, the associated costs, facts about residential homes, and other telling assisted living statistics. Stay in the know for the future of senior living!

Key Assisted Living Statistics

• 28,900 assisted living communities, in the US
• Residents:
  • over 800,000 people reside in assisted living facilities in the US.
  • over 400,000 people reside in assisted living facilities in the UK.
• Wishes vs Reality:
  • 80% of people over the age of 60 prefer to live independently
  • 70% of people will need assisted living at some point in their lives.
• Growth:
  • As of 2023, 2% of the US population were in assisted living.
  • By 2036, the number of people over 85 will double.
  • By 2049, it will triple.
  • Women outnumber men in assisted living facilities, making up 70% of all residents.

The future may seem uncertain with a growing aging population and an increasing number of assisted living communities.

However, armed with accurate information, you can make informed decisions for yourself and your loved ones.

Assisted Living Facts and Industry Figures

At some point in our lives, about 60 percent of us will need assistance with things like getting dressed, driving to appointments, or making meals

Assisted living allows seniors to remain independent while still receiving support with daily activities. Knowing the facts will help you make the best decisions for your future.

• 28,900 assisted living facilities in the United States, with nearly 1 million residents
• Senior living industry projected to grow with an estimated 74 million people in the United States over 65 by 2030
• The National Investment Center for Seniors Housing & Care (NIC), states annual revenue of assisted living facilities was approximately $83.1 billion in 2020

This represents a significant increase from previous years, driven by a growing aging population and increased demand for senior care services.

• In the US, Florida, Texas, California, and Arizona are among the top locations for assisted living facilities due to their warm climates, which attract retirees
  • States in the Northeast, such as New York and Pennsylvania, have also seen increased assisted living facilities in recent years
• In the UK, more than 200,000 British senior citizens chose to live outside the UK, mostly retiring to sunnier climates in Europe.
  • The Department for Work and Pensions revealed that over a million (1,152,585) British pensioners are currently living overseas while receiving their UK state pension. In addition, this number surpasses the count of pensioners currently residing in London (922,162).

As the baby boomer generation ages, the demand for assisted living facilities will likely continue to grow.

Assisted Living Life Expectancy and Demographics

When planning and administering care, it is crucial to take into account the life expectancy of assisted living residents, plus the demographic using these services.

• According to the National Center for Assisted Living, a resident’s average length of stay in an assisted living facility is approximately 28 months.

• That may not sound very long. Due to health conditions, and the fact that the average age of nursing home residents in 2023 was 85, the average stay in assisted living facilities may be short.

All the same, studies have shown that elderly individuals residing in care communities tend to have a longer life expectancy than those living in their homes.

• The Journal of the American Geriatrics Society, found the average life expectancy for those living in care communities was 22 months longer than those living in their homes
• It’s insightful to note that, as of 2022, over 70% of elderly residents in assisted living facilities are women
• This may be due to a combination of factors, such as women having longer life expectancies and a higher likelihood of outliving their partners. As well as cultural and societal norms that may influence women to seek assisted living options more readily than men.

Despite statistical trends, it is important to note that individual circumstances such as health status, financial situation, and personal preferences can influence these figures and result in changes.

Trends in Assisted Living and Elderly Care

According to the World Health Organization, the number of elderly people is expected to double or even triple by 2049, reaching 2.1 billion people over 60.

Advances in Technology:

• Advances in medicine and healthcare have increased life expectancy and declining birth rates in many countries.
• The elderly population may increase due to nanotechnology, which can increase the human lifespan by improving disease detection and treatment, regenerative medicine, and anti-aging therapies.
• The healthcare industry is the largest end-user of nanotechnology, with applications in drug delivery, medical imaging, and implantable devices.

Assisted living medical devices may reduce the need for senior residential care and may aid the large percentage of elderly already in nursing homes.

• Medical devices can include mobility aids such as wheelchairs, walkers, and canes and devices to assist with activities of daily living (ADLs) like eating, dressing, and bathing
• The global market for assistive technologies, including assisted living, was valued at $26.8 billion in 2020 and is expected to reach $37.4 billion by 2026
• It’s growing at a CAGR of 5.3% during the forecast period – this just shows how these devices are a huge part of the assisted living trends

The use of monitoring systems, such as fall detectors and emergency response systems, is also growing. In a survey of seniors aged 65 and older, 73% reported feeling safer with a personal emergency response system

Such systems and devices can make assisted living at home easier for elderly communities.

Assisted Living Cost

The current average cost of assisted living, varies on where you live.

• Living in an assisted care facility cost by location:
  • In the US, from $3,000-$8,000 per month depending on where you live. Learn more here for annual costs by region.
    • Alaska: $8,200
    • California: $4,800
    • Florida: $3,700
    • Hawaii: $5,700
    • Massachusetts: $6,200
    • New York: $4,800
    • Texas: $3,795
    • Vermont: $6,300
  • In the UK, from £3,290 to £4,160 per month, depending on residential care or nursing care. Learn more here about costs by region.

• Insurance or Government Backed Support:
  • In the US, Medicare doesn’t cover room and board or personal caregiver costs of assisted living, but it does cover most medical costs incurred while a person lives in an assisted living facility. Veterans and Medicaid offer assistance, but there are eligibilty requirements
  • In the UK, if your capital is over £23,250 you will need to self-fund your care. There is a means test you can take to understand what assistance the Government will provide.

The cost of assisted living has increased steadily over the past few years.

Care costs, which include assistance with activities of daily living (ADLs) such as bathing, dressing, and medication management, are typically charged on a tiered system based on the level of care needed. These costs may also include services such as housekeeping, laundry, and transportation.

• In the US, the national median monthly cost of assisted living increased by 6.1% from 2016-2020.
• Housing costs typically make up the largest portion of the monthly fee, up to 70%, and cover expenses such as rent, utilities, maintenance, and food
• Many seniors, up to 60%, use a combination of personal savings, retirement accounts, and government programs like Medicaid to help cover the cost of assisted living care.

These and many other recent home care statistics help us understand the potential costs of care and the different options available.

Conclusion

The latest assisted living statistics underscore the need for careful planning and informed decision-making to shape the future of senior care.

By understanding evolving needs, preferences, and advancements in technology and healthcare, we can create safe, comfortable, and dignified assisted living facilities that promote independence, social engagement, and personalized care.

Addressing challenges like affordability, accessibility, and quality assurance is crucial for ensuring that assisted living continues to evolve to meet the changing needs of older adults and their families.