Inflation is the biggest factor in driving up the average cost of assisted living, with costs for residents increasing by 10% in 2024 from 2023.
That’s according to the 2024 Cost of Care Survey conducted by Genworth (NYSE: GNW) and CareScout. The report compiles cost data spanning 383 cities and towns in all 50 states based on responses from 15,000 responses between July and December of 2024.
According to the report, an average unit in an assisted living community now costs an average median of $5,900 per month and $70,800 per year, representing a 10% gain over 2023.
The increase reported in 2024 from 2023 within assisted living communities is up $6,600 annually and $550 monthly. For context, Between 2021 and 2023, assisted living costs have risen 18.9%.
Adult day health care rose 5% in 2024 from 2023, up from $95 per month to $100 per month. Nursing home private room monthly rates increased 9% in 2024 to $10,646/month from $9,733. Semi-private nursing home rooms rose 7% in 2024 to $9,277 from $8,669.
Hourly home health aide costs increased 3% in 2024 to $34 per hour, as homemaker services increased to $33 in 2024, an increase of 10% compared to 2023.
The report cited the industry’s strong occupancy recovery as potentially “pressuring supply and driving higher rates” contrasted with inflation as the top factors continuing to cost increases for assisted living communities, nursing homes and adult day care centers. For home care services, labor costs remain a top contributing factor to cost increases.
“Inflation was the number one driver for assisted living communities, nursing homes, and adult day care, while labor costs was the number one driver for home care,” reads a summary of this year’s report.
Growing demand for senior living and economic factors are leading to challenges finding high-quality long-term care at prices older adults can afford, according to CareScout President and CEO Samir Shah.
Senior living operators have sought to cater to the need for more affordable services in recent years as affordability becomes a pressing issue for the industry in the coming years.
