U.S. Senior Living Market Size, Share & Trends Analysis Report By Facility (Skilled Nursing Facility, Assisted Living Facility, Active Adult (55+) Communities/Independent Living, Memory Care) And Segment Forecasts, 2024 - 2030

U.S. Senior Living Market Size & Trends

The U.S. senior living market size was estimated at USD 923.20 billion in 2023 and is projected to grow at a CAGR of 4.16% from 2024 to 2030, due to the increasing elderly population. Currently, approximately 62 million adults aged 65 and older reside in the U.S., constituting 18% of the population. By 2054, projections suggest that 84 million adults aged 65 and older will comprise an estimated 23% of the population. As life expectancy rises and the baby boomer generation ages, there is a greater demand for various types of senior housing, ranging from independent living to assisted living and memory care facilities. This demographic shift is driving the expansion of senior living, with an emphasis on providing high-quality care and lifestyle amenities. Furthermore, the integration of advanced healthcare services within these facilities ensures that the aging population can access comprehensive medical and wellness support, fostering market growth.

Senior living scenario has changed over the years due to the evolution of family structures. With more dual-income households and fewer multi-generational homes, families are increasingly seeking professional care solutions for their elderly members. This shift is leading to a higher reliance on senior living to provide safe, supportive, and engaging environments for seniors. According to Gallup, the average retirement age increased from 57 in 1991 to 61 in 2022. Additionally, among non-retirees, the anticipated age of retirement has climbed from 60 in 1995 to 66 in 2022. As traditional family caregiving becomes less feasible, the demand for professionally managed senior living options is growing. Facilities that offer a blend of healthcare, social activities, and personal care are particularly appealing to families looking for comprehensive solutions.

Advancements in healthcare have markedly influenced the senior living market. Improved medical treatments and technologies have extended life expectancy, leading to a larger elderly population. These advancements also mean that seniors are living healthier lives, increasing the demand for independent and assisted living facilities that offer medical care and wellness programs. Moreover, the integration of telemedicine and remote monitoring in senior living communities enhances the quality of care, making these options more attractive to seniors and their families.

Additionally, a substantial portion of service units or beds is dedicated to nursing care, staffed by skilled nursing professionals. These facilities provide essential services such as nursing care, 24-hour supervision, three meals daily, and assistance with daily activities. Additionally, they offer physical, occupational, and speech therapy, along with various other rehabilitation services.

Furthermore, economic considerations play a crucial role in the dynamics of the senior living market. The affordability of senior living options, influenced by factors such as income levels, housing costs, and healthcare expenses, affects consumer choices. Many seniors rely on a combination of Social Security, pensions, and personal savings to cover living costs. Economic downturns can impact the ability of seniors to afford private-pay senior living options, thereby increasing the demand for government-subsidized or lower-cost alternatives. Conversely, economic prosperity can boost market growth by increasing disposable incomes and the ability to invest in premium senior living arrangements.

Facility Insights

The active adult (55+) communities/independent living segment held the largest share of 66.19% in 2023. This expansion is driven by the increasing number of baby boomers seeking vibrant, maintenance-free lifestyles in age-restricted communities. Key drivers include the desire for social engagement, access to recreational amenities, and the appeal of downsizing to more manageable living spaces. Additionally, the rising availability of health and wellness programs tailored to active seniors further fuels demand in this market segment. For instance, in April 2024, Del Webb, the nation’s foremost builder of active adult communities for individuals aged 55 and older, announced the launch of its latest community in the Dallas area, Del Webb at Legacy Hills. The grand opening is anticipated later this summer.

The memory care segment is projected to grow the fastest in the coming years. This expansion is driven by the increasing prevalence of Alzheimer’s disease and other dementias among the aging population. According to the Alzheimer's Association, nearly 7 million Americans have Alzheimer's in 2024, with an estimated 6.9 million of them aged 65 and older. Among these individuals, 73% are 75 years old or older. Approximately 1 in 9 people aged 65 and older (10.9%) are affected by Alzheimer's. Key drivers include heightened awareness and diagnosis of memory-related conditions, advancements in specialized care techniques, and a growing emphasis on providing secure and supportive environments for residents. Additionally, families seeking dedicated care for their loved ones and improvements in facility design and technology tailored to memory care contribute to the rising demand for these specialized services.

Regional Insights

Southeast U.S. senior living market dominated the overall market and accounted for the 27.03% revenue share in 2023, driven by an aging population and increased demand for specialized healthcare services. There's a rising trend of healthcare facilities integrating senior living options to provide comprehensive care solutions. For instance, in December 2023, Selectis Health, Inc. announced that multiple wholly owned affiliates have completed agreements to sell four skilled nursing facilities in Georgia that the company owns and operates. Partnerships between healthcare providers and senior living are becoming more prevalent, enhancing service offerings and expanding geographic reach. This collaborative approach aims to meet the diverse needs of seniors while ensuring access to quality healthcare and supportive living environments.

The senior living market of Southwest U.S. is experiencing the fastest growth driven by a rapidly aging population and increasing demand for specialized care services. The region's favorable climate and lifestyle amenities attract retirees, fostering a growing market for retirement communities and assisted living facilities. Moreover, there's significant investment in healthcare infrastructure and funding support for senior care initiatives, enhancing the quality and accessibility of services. This environment contributes to a dynamic market landscape focused on meeting the diverse needs of aging residents.

Key U.S. Senior Living Company Insights

The competitive scenario in the U.S. market is highly competitive, with key players such as Brookdale Senior Living Inc.: Genesis Healthcare; Kindred Healthcare, LLC; Sunrise Senior Living, LLC; The Ensign Group, Inc.; Atria Senior Living, Inc.; Five Star Senior Living; Lincare, Inc.; The Villages; Extendicare holding significant positions. The major companies are undertaking various strategies such as new product & services development, collaborations, acquisitions, and mergers to serve the unmet needs of their customers.

Recent Developments

• In July 2024, the Centers for Medicare & Medicaid Services announced on July 8 that over 400 participants have joined a new initiative aimed at enhancing dementia care. The Guiding an Improved Dementia Experience Model, which commenced on July 1, aims to alleviate the burden on unpaid caregivers by providing care coordination and management, and respite services.

• In May 2024, PACS Group announced its intention to acquire the operations of 53 skilled nursing facilities, as well as assisted and independent living facilities, spread across eight states. This expansion will introduce PACS Group to five new markets across the country.

• In September 2023, A Place for Mom unveiled Nursinghomes.com, marking its entry into the nursing home sector as a prominent online referral platform.
  

U.S. Senior Living Market Report Scope

U.S. Senior Living Facilities Market Report Segmentation

This report forecasts revenue growth at country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the U.S. senior living market report based on facility.

• Facility Outlook (Revenue, USD Billion; 2018 - 2030)

  • Skilled Nursing Facility

  • Assisted Living Facility

  • Active Adult (55+) Communities/Independent Living

  • Memory Care

• Regional Outlook (Revenue, USD Billion; 2018 - 2030)

  • Southeast

  • West

  • Midwest 

  • Northeast

  • Southwest