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Senior Living Facilities: Market Size

In 2018, the U.S. assisted living facility market size was estimated at $73.6 billion and expected to register a CAGR of 6.4% during the forecast period – 2019 – 2026. Therefore, using the reverse CAGR calculator (online), the 2020 U.S. assisted living facility market size is estimated at $83.32 billion. In 2016, the U.S. government held about 1.3% of the residential care community market.

  • In 2018, the U.S. assisted living facility market size was estimated at $73.6 billion and expected to register a CAGR of 6.4% during the forecast period – 2019 – 2026.
  • To determine the expected market size in 2020, the reverse CAGR calculator formula can be applied, i.e.,
  • Using the formula, the market size in 2020 is calculated as follows:
    • FV = $73.6 billion x (6.4% ÷ 100)^2
    • $83.32 billion.

Breakdown of the U.S. Senior Living Facilities Market by Ownership Type

  • According to CBRE, there are approximately “23,500 professionally managed senior housing and nursing care facilities” with more than 25 beds/units in the U.S., representing an estimated 3.04 million professionally managed units/beds.
  • Data published by the National Center for Assisted Living estimates that 56% of senior housing facilities are owned by chain-affiliated organizations, i.e., (organizations with two or more senior housing communities), while independently-owned facilities accounting for 42% of the market ownership.
  • The top ten U.S. senior housing providers control 30.8% of the independent living (IL), assisted living (AL), and memory care (MC) total supply. Equally, seven providers in the top 10 category are publicly traded companies, two are privately held, and one is non-profit affiliated.
  • 2019 data published by the CDC states that the majority of long-term care facilities are for profit, including 81% of residential care communities. The data also confirms that chain affiliated residential care communities, account for a significant portion of the market ownership at 57.2%.
  • The CDC data also notes that in 2016, the U.S. government held about 1.3% of the residential care community, non-profits held 17.7%, and for profit organizations 81.0%.

Senior Living Facilities: Operating Costs

According to the Centers for Disease Control and Prevention (CDC), the expenses senior housing facilities incur vary based on the type of paid care provided and the type of provider or sector, e.g., “adult day services centers, assisted living, home health agencies, hospices, residential care communities,” etc. However, data uncovered from various senior housing facilities market reports and news updates provide insights into the typical expenses incurred by senior living facilities.

TYPICAL EXPENSES FOR SENIOR LIVING FACILITIES

Senior Living Facilities: Federal Funding

In the past, senior living facilities in the U.S. were left out of Federal funding; however, with the COVID-19 pandemic, they are now eligible for emergency funding using the same federal relief programs as hospitals and nursing homes.

Federal Funding for Senior Living Facilities

  • Senior living communities can now receive relief funding equivalent to 2% of their gross sales revenue from resident care.
  • State licensed facilities are eligible to apply for the $18 billion CARES Act Provider Relief Fund Phase 2 General Distribution.
  • In May 2019, the U.S. Department of Health and Human Services announced a $4.9 billion targeted nursing home distribution relief fund.
  • On average, nursing homes would receive a $50,000 lump-sum payment, with an additional $2,500 per bed. The average distribution per facility ranged from $315,000 to over $3 million for larger facilities.

Medicaid

Medicare

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