How Much Does Assisted Living Cost?

Assisted Living Costs by State (2024 Estimates)

Source: Genworth’s Cost of Care Survey Data from the National Senior Living Cost Index, based on 2024 estimates

Median Assisted Living Costs Breakdown

Genworth Financial's 2024 data indicates that the estimated median assisted living cost in the U.S. is $5,511 monthly, which translates to $66,126 annually. Over 800,000 Americans call an assisted living community home, so it's clear that assisted living plays a pivotal role in senior care. Notably, half of these residents are aged 85 or older.1

Assisted living costs are a significant factor that most seniors and their families consider when looking for a community. Evaluating assisted living costs can be daunting. There are variations in up-front fees, monthly charges, and additional costs for al-a-carte services. These costs can differ based on the facility's size, the range of services provided, and the individual’s specific care needs.

Assisted Living Costs vs. Aging in Place Expenses

Choosing where to live during retirement is a significant decision. One option is aging in place in your long-time family home or a downsized residence. Modern technology, like medical alert systems, empowers seniors to retain their independence, ensuring that assistance is just a button press away.

Aging in place isn’t the best option for seniors who need more hands-on assistance with activities of daily living (ADLs), such as personal hygiene, dressing, and medication management. The costs for additional services required to ensure well-being and elevate quality of life can add up, especially if you consider hiring professionals like home health aides or homemakers.

What surprises many is that the cost of assisted living in the United States is often lower than the combined expenses of living at home with in-home care services. Data from the Genworth Cost of Care Survey reveals that the projected annual cost for in-home care in 2024 is $70,699 for homemaker services and $77,769 for home health aide services.3 In contrast, the median assisted living cost is approximately $66,126 annually. Opting for an assisted living community could save you over $8,000 yearly!

Factors that Impact Assisted Living Costs

The secret to getting your money’s worth at an assisted living facility is understanding the factors that impact assisted living costs. Research your state’s median care cost as you explore your assisted living options. While the estimated 2024 median cost for assisted living is $5,511 per month, this figure can fluctuate significantly based on the facility's location. For instance, Missouri’s median monthly assisted living cost is $4,997, whereas regions like the District of Columbia and Massachusetts hover around the $7,250 mark.

Several other factors also influence assisted living costs. These include the size of your living space, the array of senior living amenities available, and the level of care needed. Some hospitality and care amenities could have an extra monthly charge. If specialized medical care, such as memory care, is required, prices will increase. It's also important to anticipate potential increases in assisted living costs over time.

Factors That Impact Aging in Place Costs

The costs of aging in place encompass more than rent, mortgage payments, or utilities. Seniors opting to stay at home must factor in the cost of home modifications to live comfortably and safely. As you tally up the costs of aging in place, assess your current living situation and plan for all necessary adjustments, such as walk-in tubs, grab bars and rails, and widening doorways, as these improvements can be pricey. For instance, a stair lift installation can range between $2,000 and $5,000.

There are other factors to budget for, such as costs related to interior upkeep. Examples include house cleaning and exterior maintenance, like gardening. Unlike assisted living communities that include social activities, you’ll need to consider the cost of staying active. Whether enrolling in fitness classes, getting out on the golf course, or trying out a new hobby, include these costs in your aging-in-place financial plan.

How to Pay for Assisted Living

The financial burden of assisted living can be overwhelming. You'll likely need to tap into various financial and medical resources to cover these costs. Without a well-thought-out strategy, your hard-earned nest egg can drain quickly. Let's delve deeper into common ways to finance assisted living and see how they might fit into your long-term living plan.

Paying Assisted Living Costs Out of Pocket

It’s common for people to pay out of pocket for at least some assisted living costs. These funds may come from retirement accounts, investments, savings accounts, or other sources of income. For those with substantial retirement savings or financial help from family, paying out of pocket may be feasible. Paying out of pocket also means you can keep the assets you own. Small savings can go a long way towardsassisted living if you live on a fixed income or limited budget.

>> Learn More: Is Assisted Living Tax Deductible?

Selling a Home

Not all older adults can downsize their homes and age in place. If the services you need are best offered in an assisted living community, selling your home to finance assisted living might be the answer. This solution hinges on your home's ownership status. If there's an outstanding mortgage, selling may not make the money to cover long-term care. Any mortgage on the home must be paid off before the remaining value can be used to pay for care. Pay off your home mortgage before using the remaining value for care.

Does Health Insurance Cover Assisted Living?

In general, private health insurance does not cover assisted living.4 Of course, every plan is different, so it never hurts to ask your insurer. Some policies could partially cover medical services within the assisted living facility. Additionally, while standard Medicare may not offer extensive coverage for assisted living, some Medicare Advantage plans might. It’s best to call your carrier for coverage details, as coverage can vary by plan.

Long-Term Care Insurance

Many long-term care insurance policies offer assisted living coverage. Remember that these policies must usually be purchased long before you need them, so it may be challenging to obtain a new policy if you want to move to assisted living soon. The coverage specifics and qualifications (such as requiring assistance with at least two activities of daily living) can vary by policy. In most cases, it’s flexible enough to cover some or all of the assisted living costs. Watch the video below to learn about long-term care insurance benefits, expenses, and coverage.

Does Medicare Pay for Assisted Living Costs?

Original Medicare does not cover room and board or assistance with ADLs in an assisted living facility. However, it might cover specific medical services provided within the facility and home health services like therapy and skilled nursing care. You might have additional coverage if you're enrolled in a Medicare Advantage plan. To learn more, check out our guide to Medicare and Medicaid insurance.

Does Medicaid Pay for Assisted Living?

Medicaid, which provides health coverage to over 80 million Americans, including low-income individuals and older adults, varies in its coverage by state. Nursing services and personal care assistance might be covered. However, states are generally prohibited from using Medicaid funds for room and board in assisted living. Some states have alternative programs assisting with these costs. Visit your state’s Medicaid website for more details about what funding may be available. If you’re unsure if you qualify for Medicaid, check out this Medicaid loophole!

Does the VA Pay for Assisted Living?

While the VA doesn't directly cover the basic costs of assisted living,6 the Veterans Aid and Attendance Pension can be a valuable resource in select scenarios. This program can offer substantial assistance each month for assisted living costs. Individuals who qualify must have a net worth of less than $150,538.

Other veterans programs, both at the state and federal levels, might offer aid. Those with VA health benefits could also qualify for coverage of specific services, such as medical care provided within the assisted living facility. Check out our veterans care guide for a comprehensive overview of veterans' benefits and eligibility.

In the video below, Jeff Hoyt, SeniorLiving.org’s editor-in-chief, speaks with Attorney Eric Olsen, executive director of the HELPS nonprofit law firm, about how veterans can take advantage of Veterans Aid and Attendance Pension benefits.

Is Assisted Living Tax Deductible?

Like everything related to the IRS, it depends. If the primary reason for residing in an assisted living facility is medical care, then the entire cost of the facility, including meals and lodging, can be claimed as a medical expense.7 Only the medical services at the facility can be claimed if the primary reason is non-medical, such as assistance with daily activities like dressing or housekeeping. Remember to keep all documentation and receipts related to assisted living expenses since you must itemize your taxes to claim this deduction. Head to the IRS Medical and Dental Expenses publication to learn more.

How Much Does Assisted Living Cost for a Couple?

Assisted living is an excellent option for mostly self-sufficient older couples who need help. As of 2024, the median monthly cost for a private one-bedroom apartment in an assisted living community is an estimated $5,511. Couples typically don't pay double since they share the same living space but must pay for the second person's meals, medical care, and other related services. Most facilities won't charge for services only one partner needs, but there might be a second-occupancy fee.

Finding Assisted Living Near You

Assisted living communities are available all over the country. Use our senior living directory to find the one closest to home (or where you plan to call home). This directory provides insights into various assisted living communities, allowing you to compare features, costs, and locations.

Whether you’re looking for a traditional assisted living that supports activities of daily living or a location with advanced services such as memory care or respite care, our senior living directory has you covered!