The costs and consumer appeal of senior living communities versus receiving at-home care have been prominent topics recently. A new ASHA report sheds light on the fact that the cost of senior living is not significantly higher than the average cost of living at home and hiring a caregiver, and may even be lower in some instances. This report follows a Wall Street Journal article highlighting the financial struggles faced by older adults aging at home.
Although this may seem like positive news for the senior living industry, the data also reveals that many older adults are still opting to live at home despite the high costs associated with home care. The reasons for this decision go beyond just financial considerations; familiarity, security, and comfort also play a significant role in their choice.
It is evident that senior living operators need to improve their communication regarding the cost of congregate living versus living at home. Additionally, they must work towards making their services more affordable for a broader range of older adults to dispel the belief that senior living communities are prohibitively expensive.
In this exclusive SHN+ Update, I delve into the recent ASHA report and Wall Street Journal stories, offering insights on:
- Comparing the cost of living at home to senior living
- Reasons why older adults may choose to remain at home despite high costs
- Strategies for operators to clarify the financial benefits of senior living for potential residents
Operators have long been wary of prospective residents experiencing “sticker shock” when comparing the cost of senior living to living at home. The updated ASHA report highlights the surprising costs associated with living at home and receiving home health care, which can be comparable to the expenses of residing in a senior living community.
Additionally, the report reveals that older adults’ net worth has increased, suggesting improved affordability for senior living communities. While this data should assist operators in demonstrating the value of senior living, there are still complex factors influencing older adults’ decisions to age at home.
One significant factor is the emotional attachment to home, as seen in the stories of older adults like Cheryl Orr and Jimmy Salhany who chose to remain in familiar surroundings despite financial and caregiving challenges. Addressing these emotional factors, along with providing comprehensive education and support, can help operators bridge the gap and attract more older adults to senior living communities.
It is clear that the senior living industry must continue to innovate and adapt to meet the evolving needs and preferences of older adults. By addressing the concerns and misconceptions surrounding the cost and quality of care, operators can enhance the appeal of senior living communities and provide a viable alternative to aging at home.
