Assisted living and senior housing residents are facing rising costs, but the pace of increase has slowed down in 2023. According to Genworth Financial’s Cost of Care Survey, assisted living care costs rose by nearly 1.4%, reaching a national median of $64,200 per month. Despite the consecutive yearly increase, the rise was less drastic compared to previous years, especially in assisted living communities. Factors such as inflation and housing market stabilization post-pandemic have contributed to this trend. With the increasing demand for long-term care services due to Baby Boomers aging, skilled workers in the industry are needed more than ever.
The survey, which included input from 176,807 individuals representing long-term care providers, highlighted increases in nursing home costs for both private and semi-private rooms by 4.92% and 4.4% respectively. Adult day care costs also saw a rise, with a median cost of $95 per day in 2023, showing a 5.56% increase. Person-centered care was a common interest among respondents, but barriers such as staff training and service costs remain a challenge. Home care services have seen an increase, including home health aides and hands-off services like cooking and cleaning, with pricing varying across regions based on severity.
Inflation and workforce shortages have been key factors driving the cost increases in different care types. Genworth’s findings show increases ranging from 1% to 10% across facility types in 2023. The company is further analyzing the data to identify trends and plans to share their insights in the future.
