As the population ages, the demand for long-term care increases. According to the Administration for Community Living (ACL), the number of seniors in the United States is expected to grow to 80 million by 2040. This projection likely contributes to the rapidly growing market caps for the senior living industry, which includes assisted living facilities, nursing homes, and communities that house older adults.
This article will review some of the key statistics related to the senior living industry, including the size of the market, its trends, and the demographics of residents. The article will also provide some insights into the future of the senior living industry.
Senior living communities come in a variety of forms and cater to a wide range of needs. We can break them down based on the level of care (both custodial and medical) provided to residents.
The most common types of senior living communities include:
Senior apartments:Senior apartments, often called 55+ apartments, are like any other type of apartment complex; however, only older adults are allowed to live in them. These communities often offer plenty of shared amenities, but provide little in terms of care services.
Independent living: Similar to senior apartments, independent living communities usually offer little in terms of care services (hence the name); however, they usually have more robust amenities, events, and other activities for residents.
Assisted living:Assisted living communities provide residents assistance with activities of daily living (ADLs) such as bathing, dressing, and eating. They also typically offer amenities such as meals, transportation, and social activities.
Memory care:Memory care communities are nearly identical to assisted living communities; however, they specialize in supporting residents with Alzheimer’s and other forms of dementia.
Nursing homes (skilled nursing facilities): Unlike other types of living arrangements, nursing homes provide round-the-clock medical care to residents.
CCRCs: Continuing care retirement communities (CCRCs) offer a continuum of care, from independent living to assisted living and skilled nursing care. This means that residents can move between levels of care as their needs change.
Statistics on the Senior Living Industry
By 2060, the senior population is projected to exceed 95 million.
Over 9.5 million seniors in the U.S. live, for some period, in long-term care and post-acute care facilities each year.
According to the National Center for Health Statistics, 38.6 percent of nursing home residents are older than 85, 26.7 percent are between 75 and 84, 18.2 percent are between 65 and 74, and 16.5 percent are under 65.
Types of Communities
The senior living industry market value has grown to $94.2 billion as of early 2023.
As of 2022, over 1.157 million people reside in nursing homes, up from 2021 but down from the seven-year high of 1.367 million in 2015.
Reports suggest that the senior living industry will grow by nearly $100 billion by 2027 due to the baby boomer population reaching retirement age. The senior population increased by 38.6 percent from 2010 to 2020, its fastest rate of growth in over a century.
What this means for seniors in 2023 and beyond is a rising demand for rooms and employees within the senior living industry, as well as more stringent community requirements and more expensive services. Choosing the right living arrangement for your situation has never been more important for the financial and emotional security of you and your loved ones.
Amie has been writing about senior care products and services for the last decade. She is particularly passionate about new technologies that help improve the quality of life for seniors and their families. Seeing her parents and grandparents age made Amie ask herself, “Would this be good enough for my loved ones?” In her spare time, Amie enjoys outdoor adventures and spontaneous road trips. Learn more about Amie here