Is a Care Home Cheaper Than a Nursing Home?

A care home is cheaper than a nursing home in most situations. Based on national median rates, seniors typically pay over $3,000 more for nursing home care than residential living and at least $2,000 more than specialized memory care. Exact costs vary according to location and required services.

Care homes are smaller, residential-style facilities that provide nonmedical support services, or limited medical services such as medication management, to help seniors maintain independence in a more intimate, homelike setting. Depending on an individual’s needs, these residences offer practical and hands-on care, including: 

• Housekeeping and laundry
• Meal preparation
• Building maintenance
• Companionship and social programs
• Assistance with activities of daily living, such as ambulation, bathing and grooming
• Specialized memory care programs for seniors with dementia (in certain facilities)

Nursing homes provide comprehensive medical and therapeutic care in a clinical setting. Nurses, certified nursing assistants and nutritionists work alongside physical, speech and occupational therapists to support those with complex or chronic conditions or recovering after an illness, injury or surgical procedure. Aides also help patients with daily living activities.

Per Genworth’s Cost of Care Survey, the 2024 nationwide median fee for nursing home care stands at $8,669 per month for a semi-private room. Seniors who need or require private accommodations pay around $9,733 monthly. In comparison, assisted living runs $5,350 each month. No national database exists for memory care fees, but such specialized programs tend to cost 20%‒30% more than assisted living, putting the U.S. baseline rate at roughly $6,420 per month.

However, costs fluctuate widely depending on the services required, facility amenities and geographic location. For example, Florida’s statewide norms stand at $4,750 for assisted living and $9,885 for a semi-private room in a nursing home. For comparison, monthly median rates run $6,250 for assisted living and $11,406 for nursing facility care in California, while Kansas’ assisted living communities charge about $5,850 per month, and its nursing home fees rest at around $7,483 for a semi-private room.  

Older adults have various options for paying for care homes and nursing facilities. Private pay options include:

• Income, such as Social Security and pensions
• Savings
• Dividends from stocks and shares
• Long-term care insurance
• Life insurance accelerated benefits
• Reverse mortgages

Depending on their care needs, care setting and financial situation, individuals may qualify for public funding, including:

• Traditional Medicaid
• Medicaid waiver programs
• Medicare (short-term nursing home stays only)
• VA benefits