US Assisted Living Facility Market
Industry: Healthcare
Published Date: July-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 120
Report ID: PMRREP34679
The US assisted living facility market was estimated at US$89.4 Bn in 2024 and is expected to be valued at US$129.2 Bn by 2031. The market for US assisted living facilities is anticipated to acquire a growth rate of 5.4% from 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Market Size (2024E) |
US$89.4 Bn |
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Projected Market Value (2031F) |
US$129.2 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
5.4% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
4.6% |
The market is a growing sector that provides companionship, security, and assistance with daily activities to the geriatric population. The increasing geriatric population that is looking for companionship, security, and assistance with daily activities are the major factors boosting market demand.
The market has witnessed significant growth in recent years, driven by factors such as the increasing geriatric population and the desire for independent living with support.
The US assisted living facility market was valued at US$89.4 Bn in 2024 and is projected to expand at a CAGR of 5.4% from 2024 to 2031. By 2031, the market is expected to reach US$129.2 Bn.
The US Department of Health and Human Services estimates that the percentage of the US population aged 65 and above will increase from 16% in 2019 to 21.6% in 2040, resulting in a higher demand for assisted living facilities.
The market trend of elderly parents relocating to family living support in urban areas is driven by the desire for independent living, mutual respect for personal space, and comfort.
The aging population is a key driver of the market. Advances in healthcare have led to better disease management and treatment, enabling seniors to live longer, even with chronic conditions. As a result, the demand for assisted living and skilled nursing care has increased.
The US assisted living facility market overview shows significant growth in the industry, driven by various factors. According to reports, the market was valued at US$71.4 Bn in 2019, and it expanded at a CAGR of 4.6% from 2019 to 2023.
The demand for assisted living facilities has been fueled by the growing geriatric population seeking companionship, security, and assistance with daily activities.
The rise in the geriatric population, due to increased life expectancy, has been a major driver of market growth. Advances in healthcare have enabled seniors to live longer, even with chronic conditions, leading to an increased need for support and care.
Looking ahead, the US assisted living facility market share is projected to continue its growth trajectory. It is expected to reach a value of US$129.2 billion by 2030, growing at a CAGR of 5.4% from 2024 to 2031.
The market is likely to be driven by factors such as the increasing aging population, rising healthcare expenditures, and the preference for independent living. Chronic diseases, such as diabetes and obesity, and the increasing need for support and care for the aging population are also expected to contribute to the demand for assisted living services.
Increasing Geriatric Population
The growing number of elderly individuals in the US is a significant growth driver for the assisted living facility market. As the baby boomer generation continues to age, the demand for supportive living arrangements with personalized care and assistance is expected to surge.
This rising geriatric population is driving the need for more assisted living facilities to meet the growing demand for services that cater to the unique needs of older adults.
Preference for Independent Living
Many seniors prefer to maintain their independence while receiving necessary support. The US assisted living facilities provide a balance between independence and assistance, offering residents the opportunity to live in a community setting and access personalized care as needed.
This preference for independent living with a safety net of support is driving the demand for US assisted living facilities as seniors seek options that allow them to maintain their autonomy while receiving the necessary care and services.
Advancements in Healthcare and Technology
Technological advancements are transforming the assisted living facility market, enhancing the quality of care and improving the overall resident experience.
Innovations such as smart home technology, remote health monitoring, and electronic health records are enabling more efficient and effective care delivery.
These advancements not only attract seniors who value the convenience and safety provided by technology but also contribute to the overall US assisted living facility market demand as the industry evolves to meet the changing needs and expectations of residents and their families.
High Operational Costs
Assisted living facilities require significant financial resources to operate effectively. The costs associated with staffing, maintaining the facility, providing personalized care, and complying with regulations can be substantial.
These high operational costs can pose challenges for both existing and new facilities, potentially limiting their ability to expand or offer affordable services.
Additionally, the rising costs of healthcare and labor can further strain the financial viability of assisted living facilities, impacting their growth and sustainability.
Regulatory Compliance
Assisted living facilities are subject to various regulations and licensing requirements, which can vary from state to state. Compliance with these regulations can be complex and time-consuming, requiring facilities to invest resources in staff training, documentation, and infrastructure.
Failure to meet regulatory standards can result in penalties, fines, or even closure of the facility. The need to navigate and adhere to regulatory requirements can pose challenges for operators, particularly smaller facilities with limited resources, potentially hindering their growth and expansion efforts.
Integration of Technology
The integration of technology presents a significant opportunity for the market. Advancements such as telemedicine, smart home automation, wearable devices, and remote monitoring systems can enhance resident safety, improve healthcare delivery, and promote independence.
Integrating technology into assisted living facilities can not only attract tech-savvy seniors but also streamline operations, reduce costs, and enhance the overall resident experience.
Specialized and Niche Services
The diversification and specialization of assisted living facility services offer a future opportunity for market growth. As the senior population becomes more diverse and specific needs arise, there is potential for facilities to cater to niche markets.
Specialized services such as memory care for individuals with dementia, LGBTQ+ friendly facilities, or those focusing on specific medical conditions can attract residents seeking tailored care and support.
Chain-Affiliated Facilities to Set a Standard in the Ownership Segment
Based on ownership, in 2022, chain-affiliated facilities held the largest market share. These facilities operate under a larger organization or corporation, providing advantages such as shared resources and centralized senior care management.
Collaborations with non-profit entities are also being explored. Although occupancy was a challenge during the pandemic, there has been a recent positive shift for chain-owned businesses.
Aged 85 & Above Age Group to Lead the Market Segmentation
Based on age group, the market expansion is predominantly driven by the aged 85 & above category. The population of the baby boomer generation has contributed to a significant demographic shift.
With advancements in healthcare, seniors are living longer despite chronic conditions, leading to an increased demand for assisted living and skilled nursing care.
The 85 & above age group requires more extensive care than younger seniors, making senior living communities a preferred choice for those needing assistance with daily activities or specialized medical attention.
Women to Rule the Gender Segment to Foster Market Growth
Based on gender, in the US assisted living facility market, women led the market with the largest segmental share in 2022. The increasing aging population of women in the US has positively influenced their preference for assisted living facilities.
Currently, over 60% of assisted living residents are women. Women, especially those aged 85 and above with chronic conditions, require the care provided by assisted living facilities. They outnumber men in experiencing brain-related illnesses like dementia. Women's proactive approach to healthcare also leads them to consider assisted living earlier when needed.
West Region Paving the Way for Market Expansion
The US assisted living facility market share was dominated by the Western region, accounting for 41% in 2022. This can be attributed to the significant increase in the elderly population in the region. The West comprises 13 cities, representing 40% of all assisted living facilities in the country.
According to the American Health Care Association and National Center for Assisted Living Report 2022, the West has the highest concentration of assisted living communities compared to other regions.
California, in particular, has the highest number of assisted living facilities in the US. However, US assisted living facility prices in the West tend to be higher due to the larger population and higher demand for such services in the region.
Department of Health Services (DHS)
The DHS in Wisconsin offers resources to help individuals understand the laws that protect them and their care in assisted living facilities. They provide information on client rights, including advice from a team of experts, and maintain a Bureau of Assisted Living Provider Search to find health and residential care providers.
Texas Health and Human Services
Texas Health and Human Services provides information and resources for assisted living facilities. They offer application forms and instructions for new projects and regulate assisted living facilities to ensure individualized health and personal care assistance in a homelike setting.
Department of Social and Health Services (DSHS)
The DSHS in Washington State contracts with some assisted living facilities to provide assisted living services. They also offer state-funded care in assisted living facilities and have a Home & Community Services Office where individuals can apply for such care.
The US assisted living facility market is characterized by a mix of established brands and small to medium-sized service providers. These companies are actively introducing new facilities to strengthen their market positions.
Major players in the industry have made substantial investments in developing world-class assisted living communities in key cities globally. Seniors with significant retirement savings often choose upscale assisted living facilities for a comfortable retirement experience.
Additionally, some smaller regional players are benefiting from changing family structures within traditional societies. These players are creating modern living facilities for senior citizens, catering to lucrative retirement plans, and adapting to evolving needs.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Country Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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By Ownership
By Age
By Region in US
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The market is predicted to rise from US$89.4 Bn in 2024 to US$129.2 Bn by 2031.
The increasing geriatric population striving for security, companionship, and assistance with daily activities is propelling market growth.
Centre For Neuro Skills, Mary Lee Foundation, NeuroRestorative, and The Mentor Network are some examples of major industry players.
High operational costs, healthcare costs, and strict regulations and licensing are the major factors that are restraining market expansion.
Integration of technology and diversification and specialization of assisted living facility services are the major factors creating opportunity.
