Private Pay or Public Subsidies – The future of Assisted Living?

As private pay centers grow across the United States, the question of whether these types of facilities will ever accept state or federal aid as payments for monthly rent in these units. Nationally, assisted living costs an average of $2,969 a month, or $35,628 annually, according to the American Association of Homes and Services for the Aging. Private pay facilities are expected to grow rapidly over the next 10 years as baby boomers begin to downsize and need more services from various senior living services in and around their households.


The population of Americans 65 and older is expected to double by 2026, the AAHSA said. Among Americans who are now 65 years old, 69 percent are expected to someday need some form of long-term care, the association said. Occupancy rates in the facilities in areas that cater to a higher socio-economic demographic continue to maintain their current levels and continue to operate near capacity. Will these private care facilities be forced at some point to accept some form of government assistance based upon a lack of senior public housing resources in various areas? Private enterprise will always have product in locations that exhibit demand for senior housing and services more attentively than state or federal government projects. This trend bodes well for the future growth of private enterprise senior housing but if demand slacks or competition heats up in certain areas, look for these companies to start accepting some forms of aid to keep the facilities filled.