GITNUXREPORT 2025

Assisted Living Industry Statistics

Assisted living industry grows rapidly, serving aging Americans with diverse needs.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

The average cost of assisted living in the U.S. is about $4,300 per month

Statistic 2

About 75% of assisted living residents pay out-of-pocket, often with savings or family support

Statistic 3

The median annual revenue per assisted living facility is approximately $1.3 million

Statistic 4

The median monthly rent for assisted living facilities varies geographically but generally ranges between $3,000 and $6,000

Statistic 5

The industry employs a significant number of lower-wage healthcare workers, with median hourly wages around $11-$13, raising workforce sustainability concerns

Statistic 6

The average new assisted living facility construction cost exceeds $15 million, influencing industry expansion strategies

Statistic 7

Medicaid covers about 50% of assisted living costs in some states, though coverage varies widely

Statistic 8

The national occupancy rate for assisted living facilities is around 81%

Statistic 9

The number of assisted living facilities is projected to grow at an annual rate of 5.7% through 2025

Statistic 10

The industry has seen a 3-4% annual increase in new assisted living facility openings over the past five years

Statistic 11

The overall growth rate of the assisted living market is faster than the overall healthcare services sector, indicating rising demand

Statistic 12

The most common amenities offered in assisted living facilities include meal services, transportation, housekeeping, and medication management

Statistic 13

COVID-19 pandemic led to increased adoption of telehealth services in assisted living communities, with usage doubling during 2020-2021

Statistic 14

The industry is expected to face a 15% workforce shortage by 2030, which could impact care quality

Statistic 15

Retirement homes and assisted living facilities are projected to see a 7% growth rate between 2020 and 2030

Statistic 16

The industry has been increasingly adopting electronic health records (EHR), with over 70% of facilities reporting full implementation by 2022

Statistic 17

Family caregivers of assisted living residents provide an average of 8 hours of care per week, supporting overall industry sustainability

Statistic 18

Assisted living industry revenue growth outpaced general inflation rates over the past decade, indicating robust sector expansion

Statistic 19

The industry experienced a significant increase in mergers and acquisitions during the last five years, with an average of 8 deals annually

Statistic 20

About 65% of assisted living facilities are part of larger senior care chains, indicating industry consolidation

Statistic 21

Overall, the industry is projected to add approximately 200,000 new jobs over the next decade, supporting ongoing growth

Statistic 22

The average occupancy rate in assisted living facilities decreased slightly during the COVID-19 pandemic but is expected to rebound to pre-pandemic levels by 2024

Statistic 23

The annual expenditure on assisted living infrastructure, technology, and staffing is projected to grow by 5-6% annually, indicating continued investment

Statistic 24

Many assisted living providers are adopting green and sustainable building practices, with 25% implementing environmentally friendly features

Statistic 25

The typical staff-to-resident ratio in assisted living is approximately 1:3 to 1:4 during daytime hours, varying by state and facility size

Statistic 26

Telemedicine consultation rates in assisted living increased by over 100% during the COVID-19 pandemic, supporting remote healthcare delivery

Statistic 27

The industry is projected to encounter a significant workforce challenge, with a shortage of caregivers expected to reach 500,000 by 2030

Statistic 28

The industry is increasingly adopting robotic and automation technologies to assist with routine tasks, with about 20% of facilities integrating such systems by 2023

Statistic 29

The assisted living industry in the United States is expected to reach a market size of $87.72 billion by 2023

Statistic 30

There are approximately 28,900 assisted living facilities across the U.S.

Statistic 31

About 1.5 million Americans live in assisted living facilities

Statistic 32

Only about 10% of seniors needing long-term care are in assisted living, indicating potential growth

Statistic 33

The industry employs over 350,000 healthcare professionals, including caregivers, nurses, and administrative staff

Statistic 34

The elderly population (aged 65+) is growing faster than the number of available assisted living facilities, suggesting future industry demand

Statistic 35

State licensing and regulation standards for assisted living vary widely but are tightening in many states to improve safety

Statistic 36

Nearly 85% of residents in assisted living are aged 75 or older

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Female residents make up approximately 70% of assisted living populations

Statistic 38

About 60% of assisted living residents require assistance with activities of daily living (ADLs)

Statistic 39

The majority of assisted living residents have some form of cognitive impairment, including dementia

Statistic 40

The percentage of assisted living residents with private insurance is approximately 12%

Statistic 41

The average length of stay for residents in assisted living is about 28 months

Statistic 42

The number of staff per resident in assisted living varies but generally ranges from 0.5 to 1.0 staff members per resident

Statistic 43

About 20% of residents in assisted living have a mental health diagnosis, predominantly depression and anxiety

Statistic 44

The most common reason for transitioning into assisted living is the inability to live independently due to health issues

Statistic 45

About 80% of assisted living residents have at least one chronic health condition, such as hypertension or diabetes

Statistic 46

Approximately 50% of assisted living residents participate in some form of recreational or social activity daily

Statistic 47

The average age of residents in assisted living facilities is around 85 years old

Statistic 48

Nearly 12% of assisted living residents require full assistance with activities of daily living, such as bathing and toileting

Statistic 49

The ratio of residents to beds varies significantly but is often around 1:1 or 1:1.5 in well-staffed facilities

Statistic 50

Nearly 25% of residents in assisted living have two or more chronic conditions, requiring complex care coordination

Statistic 51

The top three reasons residents move into assisted living are safety concerns, health deterioration, and the desire for social engagement

Statistic 52

Disability or chronic illness is a primary driver for moving to assisted living, with over 50% citing health-related reasons

Statistic 53

The average length of stay for residents with dementia in assisted living is about 20 months, shorter than residents without cognitive impairment

Statistic 54

The top five amenities most valued by residents are dining services, medication management, transportation, social activities, and safety/security features

Statistic 55

In 2022, around 30% of assisted living residents were veterans or spouses of veterans, qualifying for VA benefits and services

Statistic 56

Approximately 40% of assisted living residents have a diagnosis of depression, highlighting mental health needs

Statistic 57

Assisted living resident satisfaction rates are high, with over 85% expressing satisfaction with care and amenities

Statistic 58

The proportion of assisted living residents requiring assistance with mobility has increased over the last decade, now affecting approximately 65-70% of residents

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Key Highlights

The assisted living industry in the United States is expected to reach a market size of $87.72 billion by 2023
There are approximately 28,900 assisted living facilities across the U.S.
The average cost of assisted living in the U.S. is about $4,300 per month
About 1.5 million Americans live in assisted living facilities
Nearly 85% of residents in assisted living are aged 75 or older
Female residents make up approximately 70% of assisted living populations
The national occupancy rate for assisted living facilities is around 81%
About 60% of assisted living residents require assistance with activities of daily living (ADLs)
The majority of assisted living residents have some form of cognitive impairment, including dementia
The number of assisted living facilities is projected to grow at an annual rate of 5.7% through 2025
About 75% of assisted living residents pay out-of-pocket, often with savings or family support
The percentage of assisted living residents with private insurance is approximately 12%
The average length of stay for residents in assisted living is about 28 months

As the assisted living industry in the United States approaches an $88 billion market size with nearly 30,000 facilities and over 1.5 million residents, its rapid growth, evolving care models, and expanding demand highlight a critical juncture in the nation’s approach to senior care.

Cost and Revenue Analysis

The average cost of assisted living in the U.S. is about $4,300 per month
About 75% of assisted living residents pay out-of-pocket, often with savings or family support
The median annual revenue per assisted living facility is approximately $1.3 million
The median monthly rent for assisted living facilities varies geographically but generally ranges between $3,000 and $6,000
The industry employs a significant number of lower-wage healthcare workers, with median hourly wages around $11-$13, raising workforce sustainability concerns
The average new assisted living facility construction cost exceeds $15 million, influencing industry expansion strategies
Medicaid covers about 50% of assisted living costs in some states, though coverage varies widely

Cost and Revenue Analysis Interpretation

With monthly costs soaring to $4,300 and construction investments surpassing $15 million per facility, the assisted living industry balances lucrative median revenues and substantial expenses, all while grappling with workforce wage concerns and patchy Medicaid coverage that highlight both its economic promise and the fragility of its social safety net.

Industry Trends and Growth

The national occupancy rate for assisted living facilities is around 81%
The number of assisted living facilities is projected to grow at an annual rate of 5.7% through 2025
The industry has seen a 3-4% annual increase in new assisted living facility openings over the past five years
The overall growth rate of the assisted living market is faster than the overall healthcare services sector, indicating rising demand
The most common amenities offered in assisted living facilities include meal services, transportation, housekeeping, and medication management
COVID-19 pandemic led to increased adoption of telehealth services in assisted living communities, with usage doubling during 2020-2021
The industry is expected to face a 15% workforce shortage by 2030, which could impact care quality
Retirement homes and assisted living facilities are projected to see a 7% growth rate between 2020 and 2030
The industry has been increasingly adopting electronic health records (EHR), with over 70% of facilities reporting full implementation by 2022
Family caregivers of assisted living residents provide an average of 8 hours of care per week, supporting overall industry sustainability
Assisted living industry revenue growth outpaced general inflation rates over the past decade, indicating robust sector expansion
The industry experienced a significant increase in mergers and acquisitions during the last five years, with an average of 8 deals annually
About 65% of assisted living facilities are part of larger senior care chains, indicating industry consolidation
Overall, the industry is projected to add approximately 200,000 new jobs over the next decade, supporting ongoing growth
The average occupancy rate in assisted living facilities decreased slightly during the COVID-19 pandemic but is expected to rebound to pre-pandemic levels by 2024
The annual expenditure on assisted living infrastructure, technology, and staffing is projected to grow by 5-6% annually, indicating continued investment
Many assisted living providers are adopting green and sustainable building practices, with 25% implementing environmentally friendly features
The typical staff-to-resident ratio in assisted living is approximately 1:3 to 1:4 during daytime hours, varying by state and facility size
Telemedicine consultation rates in assisted living increased by over 100% during the COVID-19 pandemic, supporting remote healthcare delivery
The industry is projected to encounter a significant workforce challenge, with a shortage of caregivers expected to reach 500,000 by 2030
The industry is increasingly adopting robotic and automation technologies to assist with routine tasks, with about 20% of facilities integrating such systems by 2023

Industry Trends and Growth Interpretation

As assisted living facilities edge toward nearly 83% occupancy amid rapid growth and technological advancements, the industry’s rising demand and innovation are shadowed by looming workforce shortages that threaten to turn this thriving sector into a high-stakes balancing act.

Market Size and Demographics

The assisted living industry in the United States is expected to reach a market size of $87.72 billion by 2023
There are approximately 28,900 assisted living facilities across the U.S.
About 1.5 million Americans live in assisted living facilities
Only about 10% of seniors needing long-term care are in assisted living, indicating potential growth
The industry employs over 350,000 healthcare professionals, including caregivers, nurses, and administrative staff
The elderly population (aged 65+) is growing faster than the number of available assisted living facilities, suggesting future industry demand

Market Size and Demographics Interpretation

With the aging baby boomer population outpacing assisted living capacity and only a fraction of seniors currently served, the industry’s booming $87.72 billion market signals a ripe opportunity—and a pressing need—for expansion, as healthcare professionals rally to meet an underserved demand.

Regulatory Environment and Quality Standards

State licensing and regulation standards for assisted living vary widely but are tightening in many states to improve safety

Regulatory Environment and Quality Standards Interpretation

As states tighten licensing standards for assisted living, the industry is slowly steering away from the wild west of regulation toward a more secure and standardized future, though the journey remains quite a ride.

Resident Characteristics and Needs

Nearly 85% of residents in assisted living are aged 75 or older
Female residents make up approximately 70% of assisted living populations
About 60% of assisted living residents require assistance with activities of daily living (ADLs)
The majority of assisted living residents have some form of cognitive impairment, including dementia
The percentage of assisted living residents with private insurance is approximately 12%
The average length of stay for residents in assisted living is about 28 months
The number of staff per resident in assisted living varies but generally ranges from 0.5 to 1.0 staff members per resident
About 20% of residents in assisted living have a mental health diagnosis, predominantly depression and anxiety
The most common reason for transitioning into assisted living is the inability to live independently due to health issues
About 80% of assisted living residents have at least one chronic health condition, such as hypertension or diabetes
Approximately 50% of assisted living residents participate in some form of recreational or social activity daily
The average age of residents in assisted living facilities is around 85 years old
Nearly 12% of assisted living residents require full assistance with activities of daily living, such as bathing and toileting
The ratio of residents to beds varies significantly but is often around 1:1 or 1:1.5 in well-staffed facilities
Nearly 25% of residents in assisted living have two or more chronic conditions, requiring complex care coordination
The top three reasons residents move into assisted living are safety concerns, health deterioration, and the desire for social engagement
Disability or chronic illness is a primary driver for moving to assisted living, with over 50% citing health-related reasons
The average length of stay for residents with dementia in assisted living is about 20 months, shorter than residents without cognitive impairment
The top five amenities most valued by residents are dining services, medication management, transportation, social activities, and safety/security features
In 2022, around 30% of assisted living residents were veterans or spouses of veterans, qualifying for VA benefits and services
Approximately 40% of assisted living residents have a diagnosis of depression, highlighting mental health needs
Assisted living resident satisfaction rates are high, with over 85% expressing satisfaction with care and amenities
The proportion of assisted living residents requiring assistance with mobility has increased over the last decade, now affecting approximately 65-70% of residents

Resident Characteristics and Needs Interpretation

With nearly 85% of residents aged 75 and older living with cognitive challenges and chronic health conditions, assisted living facilities function as both safety nets and social hubs — albeit often under-resourced, as only about 12% have private insurance, emphasizing the urgent need for sustainable, comprehensive care models in an aging population that values dignity, engagement, and security.