2024 Assisted Living Statistics
The demand for and usage of senior housing in the United States has seen notable trends, especially in recent years. Here are some statistics reflecting the current state and anticipated growth in the sector:
Occupancy Rates:
– The senior living occupancy rate increased by 0.9 percentage points from the third to the fourth quarter, reaching 83% from 82.1%, which was up by 5.2 percentage points from a pandemic low of 77.8% in the second quarter of 2021 (McKnight’s Senior Living).
– The all-occupancy rate of senior housing rose to 84.4% in the third quarter of 2023, which, although below the 87.1% rate of the first quarter of 2020, is expected to reach or exceed that level in 2024 (Globest).
Market Growth:
– The US Senior Living Market size is projected to grow from USD 92.6 billion in 2023 to USD 118.17 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 5% (Mordor Intelligence).
– The senior living industry market value has grown to $94.2 billion as of early 2023 (The Senior List).
Demand Trends:
– The industry recorded eight consecutive quarters of positive net absorption, representing an annual demand growth of more than 5% in Q1 2023, in contrast to the average annual demand of 2.5% pre-pandemic (AEW).
Resident Statistics:
– As of 2022, over 1.157 million people reside in nursing homes, which was an increase from 2021 but a decrease from the seven-year high of 1.367 million in 2015. Additionally, around 818,800 seniors stay in residential care communities (The Senior List).
These statistics suggest a recovering and growing senior housing market, with increasing occupancy rates and market values, indicating a positive outlook for the sector in meeting the rising demand driven by an aging population.
Current Data Trends and Projections
National senior living statistics
About 2% of seniors in the U.S. live in assisted living facilities. The average cost of assisted living in the U.S. is $4,300 per month. For context, the estimated median monthly cost for a 44-hour-a-week home health aide is $4,576.
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 2019, California has 1,246,079 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
- Heart disease
- Alzheimer’s or dementia
Common features 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 71% of residents have memory impairments. 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. As care needs become more intense, most assisted living residents move to nursing homes or other types of senior care.
- The majority of residents are women. About 71% 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. The average age of assisted living residents is 84. Though most facilities allow patients as young as 65, 52% of residents are over 85 and 30% are between 75 and 84.
The reason for this growth: Baby boomers are currently 57 to 75 years old and represent 21.19% of the population. This is a sharp increase for this demographic — 20 years ago, the silent generation made up only about 15.4% of the population when it was aged 56 to 73.
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 almost 775,000 new units by 2030 and 986,000 by 2040.
The data and information highlight the increasing importance and demand for assisted living facilities due to the aging population in the United States. The growth of the senior population, coupled with the desire for more person-centered care, has led to the expansion of assisted living facilities as an alternative to traditional nursing homes. The aging baby boomer generation, with their financial assets and strong preferences for high-quality senior living, are likely to further drive the demand for these facilities.
The projections based on the U.S. Census Bureau’s data indicate a substantial increase in the senior population, which will require significant expansion in the capacity of assisted living communities. The nearly doubling of the senior population and the corresponding need for almost 1 million additional assisted living beds over the next four decades underlines the importance of planning and investment in senior care infrastructure.
Moreover, the unique demands and expectations of the baby boomer generation regarding post-retirement living may also influence the evolution of assisted living facilities. They may necessitate the incorporation of more personalized services, high-quality accommodations, and opportunities for seniors to pursue their interests and passions. This trend could lead to a more holistic and person-centered approach in assisted living, aligning with the original ethos of providing a more personalized care model compared to traditional nursing homes.
The scenario emphasizes the need for policymakers, investors, and stakeholders in the senior care industry to anticipate and respond to the growing demand for assisted living services. Strategic planning, investment in infrastructure, and an understanding of the evolving preferences of seniors could be key in meeting the upcoming challenges and ensuring that the needs of the aging population are adequately met.
How we are addressing this market
To address the pronounced demand for senior housing and the looming investment gap of nearly $1 trillion by 2050, HavenCo has unveiled a robust strategy aimed at catalyzing the sector towards meeting both the current and projected demands. The meticulously crafted strategy marries financial acumen with inventive development avenues, highlighting HavenCo’s commitment to playing a pivotal role in bridging the projected investment and unit shortfall plaguing the senior housing sector.
Investment mobilization forms the cornerstone of this strategy. HavenCo’s subsidiaries, Haven Senior Investments and Haven Realty are set to launch broad-based campaigns to attract capital from a diverse investor spectrum including family offices, institutional investors, and private equity firms, underscoring the long-term growth and societal impact potential of senior housing investments. In addition, forging Public-Private Partnerships with governmental bodies at various levels will be pivotal for securing essential funding, land grants, or tax incentives crucial for the fruition of senior housing projects. Complementing these efforts is a comprehensive Investor Education initiative comprising seminars, webinars, and personalized meetings aimed at elucidating the demographic trends driving the demand for senior housing and the financial merits ingrained in sector investment.
“To navigate the investment chasm in the senior housing landscape, a multi-pronged approach that blends financial savvy with innovative development is indispensable. Our strategy is tailored to not only address the current demand but also lay a solid foundation for the future. Through concerted efforts in investment mobilization, technology integration, and community engagement among others, we are steadfast in our resolve to make a significant stride towards bridging the investment and unit shortfall in this sector,” said John Hauber, CEO of HavenCo.
Embracing Innovative Development Models is another pillar of HavenCo’s strategy. Modular Construction techniques will be harnessed to expedite development timelines, control costs, and ensure quality. Mixed-Use Developments will see the crafting of facilities that meld senior housing with retail, healthcare, and recreational offerings, cultivating self-contained communities and enhancing appeal for both residents and investors. Furthermore, Adaptive Reuse will involve identifying underutilized properties ripe for transformation into senior housing facilities, saving on construction costs and time.
Technology Integration will see the infusion of Smart Technologies to enhance seniors’ quality of life, improve operational efficiencies, and oversee health and safety. Virtual tours and digital leasing avenues will be extended to abbreviate the leasing cycle and maintain robust occupancy levels.
Operational Excellence will be pursued through refining operations via efficient staffing paradigms, centralized procurement, and leveraging technology for routine tasks to reduce operational costs and improve margins. Performance metrics will be relentlessly monitored and analyzed to unearth improvement avenues and ensure the financial viability of each venture.
Market Research and Localization will entail conducting exhaustive market research to grasp local needs and customizing housing solutions to cater to the unique demands of each community. Community Engagement will involve intimate engagement with local communities to accrue support for new developments and ensure projects are warmly received.
Sustainability and Resilience will be championed through embracing Green Building Practices to mitigate environmental footprint, trim operational costs, and allure eco-aware investors. Lastly, Legislative Advocacy will involve engaging in robust advocacy to champion favorable policies that will catalyze investments and development in the senior housing realm.
Through a harmonious blend of these seven key pillars, HavenCo stands at the forefront of a concerted effort to significantly contribute towards addressing the senior housing sector’s challenges. This strategy underscores HavenCo’s unyielding commitment to fostering a sustainable and vibrant senior housing landscape, underpinned by financial viability, innovative development, and a deep-seated focus on enhancing the quality of life for seniors.
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