Argentum released an updated edition of The Value of Assisted Living in America in conjunction with the Public Policy Fly-In. This year’s report focused on the affordability of assisted living and how assisted living delivers lower costs for families and public programs, better health outcomes, higher quality of life for older adults, reduced strain on Medicare and Medicaid, and scalable solutions for a rapidly aging population.
The report provides a roadmap for addressing the key challenges in long-term care by increasing affordability and access to care, and resolving the workforce shortages. This includes legislation to help lower-income seniors who can’t afford care independently and to refocus effective workforce training programs, expanding the use of tax-advantaged programs to help pay for a family member’s long-term care needs, and implementing and expanding programs to allow veterans to choose assisted living for their long-term care needs.
The report notes that every day, more than 10,000 Americans turn age 65, and this population will face a 70% chance of requiring some form of long-term care. Moreover, the population of Americans aged 85 and older—the group that typically requires the most care—is projected to more than double by 2040. Roughly 1.4 million seniors already call assisted living their home, and investment is needed critically to meet a projected shortage of 881,000 assisted living units by 2030, with associated development costs of more than $1 trillion by 2050.
Among the report’s findings include:
- Assisted living is the most affordable long-term care option, with an average annual cost of $70,800, compared to $127,750 in skilled nursing or $77,792 for limited home health aide support.
- Assisted living may be significantly more affordable than living independently while receiving home health care, with seniors able to save as much as $81,768 in the first year and $69,318 each year thereafter when opting for an assisted living community.
- The social model of assisted living has a positive impact on seniors, with 93% of residents reporting enough social activities in their communities, and 75% believed that assisted living clearly improved their quality of life. Staying physically active and socially engaged may lower Alzheimer’s risk by 50%.
- Coordinated care with other providers, including preventive and social support, helps keep residents healthy and lowers Medicare costs. On average, health care utilization and costs decrease between a resident’s first and third year, and younger residents (ages 65-74) experience greater reductions in high-cost care following their first year in senior housing.
- A 2025 survey found that 85% of respondents made new friends after moving into a community, with nearly half sharing meals with friends (up from just 8% before moving into a community) and 37% have found meaning or purpose in their activities (up from 16% before moving in). As a result, 61% said feelings of loneliness and isolation improved and 70% said their health conditions remained stable or improved.
- Assisted living communities scored 867 out of 1,000 on the 2025 J.D. Power Senior Living Satisfaction Survey, an 18-point rise from last year and higher than travel and hospitality sectors. Key drivers include improvements in satisfaction with dining (+11 points); resident activities (+8); and resident apartment/living unit (+7).
- A poll found adults aged 50 to 80 living alone report higher isolation rates, and a study linked social isolation to $6.7 billion in extra annual Medicare spending. Just 14.3% of assisted living residents reported loneliness, compared to 29.9% of seniors living alone and up to 75% in nursing homes.
- Most Americans are not adequately prepared for their long-term care needs. An estimated 42% of baby boomers nearing retirement do not have a retirement account, and 44% of Generation X do not invest in retirement accounts, while 28% of all working-age adults lack any retirement savings. Just 14% of retirees feel very certain they can afford long-term care. A 2025 poll commissioned by AARP found that 84% of voters support a federal tax credit to help offset long-term care expenses for loved ones.
- By 2040 more than 20 million workers will be needed across long-term care, with total employment projected to reach almost 8.3 million, an increase of some 2.5 million jobs—or 42.1%—from 2021. Among these positions include a need for more than 12 million home health and personal care aides, more than 1 million nurses between RNs and LPNs, more than 2 million nurse assistants, more than 1 million in food service, more than 300,000 in housekeeping, and more than 700,000 in office and administration.
Get a copy of the Value of Assisted Living in America today.