Author: Andrea Miller
Reviewed By: Rachel Rose

Assisted living facilities can raise room prices annually. Many communities increase rent by 4% to 10% every year. Before moving to assisted living, review the contract to learn about the community’s rate increase policy.

How much do assisted living rates increase each year?

Assisted living rates nationwide increase by about 4.65% each year, according to data from the Genworth Cost of Care Survey. For example, if you pay $5,000 per month in 2024, expect your monthly rent to increase to around $5,232.50 for 2025.

Why do assisted living rates increase every year?

Assisted living communities raise rates every year to reflect the rising cost of operations. Increases cover the cost of staff time, which has become more expensive as many states face nursing shortages. In addition, facilities face rising costs for employee certification, equipment and regulatory fees.

How much will assisted living cost in the future?

Assisted living will cost an average of $6,608 per month across the U.S. by 2034. By 2044, rates could rise to about $8,881 per month, based on projections from Genworth.

How do families pay for assisted living?

Families use a combination of methods to pay for assisted living for a loved one. Common strategies include cashing in life insurance policies, purchasing annuities and getting a reverse mortgage. Some people qualify for state Medicaid waivers or veterans benefits, which help pay for assisted living.