Author: Jackie Smart
Reviewed By: Kristi Bickmann
Assisted living will cost an average of $106,574 per year in 20 years, according to Genworth Financial. Having tracked historical cost trends, the long-term care experts predict an increase of 97.3% by 2044 based on the 2021 average of $54,000.
Several factors are responsible for this huge increase in assisted living rates, including 3% annual inflation, an aging population, demand for long-term care, a lack of skilled caregivers and the rise in chronic conditions.
The average cost of assisted living in 2004 was $28,800. In the 20 years since studies began, the industry has seen a steady 36 to 38% increase every 10 years, with rates hitting $39,600 in 2012 and $54,000 in 2021.
Costs vary greatly across the country. In 2021, monthly rates ranged from $3,000 in Missouri to $6,978 in the District of Colombia. By 2044, Missouri seniors can expect to pay an average of $5,921, while those in D.C. will see assisted living fees soar to $11,739 per month.
Several factors are set to influence the 97% increase in assisted living costs over the next 20 years.
Figures show more than 810,000 seniors resided in assisted living communities during 2023. With the population of adults aged 65+ expected to increase from 58 million to 82 million between 2022 and 2050 and 70% of people requiring some form of assisted living care in their lifetime, the demand for long-term care is set to rise.
The complexity and amount of care that seniors will require in 20 years are likely to increase. Around 40% of older adults live with more than one chronic condition, including diabetes, heart disease, Alzheimer’s and cancer. America’s aging population means more and more people will be at risk of these conditions.
People with multiple chronic conditions are more likely to require assistance with the activities of daily living, such as help with bathing, grooming, transferring and medication management.
Although the number of seniors in the country will increase by more than 42% by 2050, the population of adults aged 18 to 64 is only predicted to increase by around 4.5%. The ratio of potential caregivers to seniors is set to decrease just as the demand for assisted living care staff increases.
