Aging in place makes the senior living industry anxious. A new article from Caring.com scopes out the cost differential between aging in place (in some states), replete with home modification requirements and related costs. It identifies the 10 states where assisted living is actually cheaper than aging at home, with South Dakota as being the most reasonable by comparison to staying at home. Hmmm. Average temperature in South Dakota in February is, let’s say, too cold to go for a walk. But no worries, the median age in South Dakota is 38.5 and only 5% are aged 80+. So it may be cheaper to age in place there, but virtually no one is doing it.
Back to the cost of aging in place article which is, uh, interesting. Can there be no more vested interest in advocacy for the move to senior living than a search tool to help people find it? Even A Place For Mom does not price the differential between a finding a place for Mom and ‘aging in place.’ One can imagine in these aging in place obsessed times, that Caring.com’s senior living clients and sponsors have expressed some level of concern that in the near term most people won’t want to move in unless forced by family.
A shortage of new senior living construction means fewer available units for the 80+. The senior housing industry believes it will be short half a million units by 2030. Boomers start turning 80 in January 2026. Life expectancy at 65 averages mid-80s. Average move-in age in assisted living is age 84. Forty percent of residents in assisted living have some type of dementia. Or they are widowed, divorced, and/or downsizing from a too-big home. In other words, theirs is a need-based move, often funded by the sale of the home they are leaving.
High assisted living costs push seniors to stay home regardless of the home’s condition. The average cost of assisted living is around $70,000 or (much) more in states like California, New Jersey, Massachusetts. There are efforts underway to provide a ‘middle market’ alternative, but it is at the case study/example stage. So most people are trying to ‘age in place,’ which in turn drives up the demand for home care services for those who need them, not to mention highlights the need to modify the home. And most will need support with average life expectancy of mid-80s.
What it means – maybe it is time to go. People want to age in place because they don’t like or can’t afford the alternative. Their homes may not be ‘age friendly.’ Only 40% have a first floor full bath, for example. But for those who meet the other senior living criteria (including affordability, or they are solo agers with no nearby family, dementia) and there is a senior living option, they or their families may look at the Longevity Preparedness Index – and decide that it is time to go. What’s missing? More understanding of options – thoughts about technology's role beyond Internet access, including AI, in 'Longevity Prepardness', and lower costs and geographic availability.
