U.S. Assisted Living Facility Market- Industry Outlook & Forecast 2023-2028

MARKET INSIGHTS

The U.S. assisted living facility market size was valued at USD 97.60 billion in 2022 and is expected to reach USD 133.42 billion by 2028, growing at a CAGR of 5.35% during the forecast period. The demand for the assisted living facilities market is rising due to multiple factors, including the rising baby boomers, the rising aging population, the increased healthcare expenditure, and the increased preference for independent living. Furthermore, the occupancy rate for assisted living in the U.S. is rising steadily. Diabetes, increased age, obesity, and other chronic diseases are key factors that contribute to the rising demand in the United States. Also, the constant launch of innovative designs &  well-developed infrastructure is important for vendors operating in the highly competitive U.S. assisted living facility market to achieve a high market share.

WHY THIS REPORT?

This report provides

• A thorough insight into the structure and size of each market segment.
• This paper analyzes several micro-market indicators, considering growth factors, industry prospects, and strategic contributions to the U.S. assisted living facility market.
• Overviews of the top manufacturers/marketed products, pipeline analysis, clinical trial analysis,  competitive landscape, vendor profiles, mergers & acquisitions.
• Provide strategic planning, such as comprehensively understanding consumer behavior, competitors, new product development, geographic market expansion, and merger & acquisition ​pipelines.
• Insights to formulate effective sales and marketing strategies by understanding the competitive landscape and analyzing various competitors' performance.
• Identifies emerging players with potentially strong product portfolios and creates effective counter strategies to gain a competitive advantage.

MARKET TRENDS & DRIVERS

High Demand for Senior Living Communities
The surge in demand for senior housing can be attributed to the growing population of older adults, leading to a heightened requirement for high-quality housing options tailored to their needs. This sustained and expanding demand has served as a stable pillar, supporting various senior housing properties and effectively cushioning operators from the impact of economic fluctuations, escalating expenses, and challenging conditions in the capital market. Moreover, the resilience in occupancy levels highlights the sector's ability to adapt and thrive amid dynamic circumstances, reassuring stakeholders and investors about the enduring potential of senior housing as a promising and resilient investment choice.

Increasing Demand for ALF among New Generation
Developers, operators, investors, and older adults are showing a growing interest in the active adult property category, mainly due to the distinctive preferences of the baby boomer generation. Although certain markets already boast thousands of active adult rental units, the relatively low penetration rate compared to traditional senior housing suggests that this property type is still in its early phases of development.

The overall number of households and the population aged 65 and above is substantial and continually increasing. When considering the existing inventory, the penetration rates indicate considerable potential for new active adult rental offerings, attracting those seeking entry into this market segment. Also, as the baby boomer generation seeks housing options that cater to their needs and desires, the active adult property type is an attractive and promising avenue for developers and investors alike. Emphasizing this aspect, the emerging market for active adult rentals presents opportunities for growth and expansion in response to the evolving demands of this demographic, supporting the U.S. assisted living facility market growth.

SEGMENTATION INSIGHTS

INSIGHTS BY OWNERSHIP
The U.S. assisted living facility market by ownership is segmented into chain-affiliated and independently owned. The chain-affiliated segment holds the most dominant United States market share in 2022. These are part of a larger organization or corporation known as a chain or senior living chain. They operate across different locations under the same brand name, providing several advantages, from resources to senior care management under the chain's umbrella. Many organizations are exploring the advantages of potential collaborations with other non-profit entities. Occupancy was an issue during the COVID-19 pandemic, but there has recently been a positive shift for chain-owned businesses. Moreover, there is no threat from new entrants, as their percentage increase is not substantially high. It is also observed that partnerships and acquisitions made by chain-affiliated assisted living facilities do not significantly impact family-owned or independent assisted living communities.

INSIGHTS BY AGE GROUP
The aged 85 & above age group holds the most significant share of the U.S. assisted living facility market in 2022. The U.S. has witnessed a significant demographic shift in recent years due to the increase in the population of the baby boomer generation. Advances in healthcare have led to better management of diseases and treatment, which enables seniors to live longer, even with chronic conditions. This, in turn, increases the demand for assisted living and skilled nursing care. Moreover, individuals aged 85 and above require more extensive care than younger seniors, so senior living communities have become a preferred choice for those needing assistance with daily living activities or specialized medical attention.

INSIGHTS BY GENDER
The U.S. assisted living facility market by gender is segmented into men and women. The women segment holds the most significant segmental share in 2022. The rising aging population of women in the U.S. is one of the major factors that positively influenced women's preference for assisted living facilities. Currently, more than 60% of assisted living residents are women. An 85-year-old woman with at least one chronic condition needs the care provided by assisted living facilities. Women make up most of the older people in the U.S. and utilize the facilities provided by assisted living communities. Furthermore, even in their advanced years, women remain active but require assistance for their day-to-day tasks, and women outnumber men in experiencing brain-related illnesses associated with aging, such as dementia. Without specialized care, these conditions can significantly harm senior's well-being. Moreover, women tend to use healthcare services more frequently and proactively seek medical attention, potentially leading to earlier consideration of assisted living when the need arises.

REGIONAL ANALYSIS

The Western region dominated the U.S. assisted living facility market share, accounting for 41% in 2022. There is a significant increase in the percentage of the elderly population in the West region. The region comprises 13 cities, constituting 40% of assisted living facilities offering services to seniors. Also, the West region has a strong presence of assisted living facilities. Based on the American Health Care Association and National Center for Assisted Living Report 2022, the West region had the highest presence of assisted living communities compared to other regions. Furthermore, California boasts the highest number of assisted living facilities compared to any other state in the U.S., making it a home to a substantial portion of the nation in assisted living communities. However, the prices for assisted living facilities are a bit higher than those in other zones. This is because of the size of the population living in the western zone, thereby causing more demand for assisted living communities, which, in turn, contributes to higher prices.

VENDOR LANDSCAPE

The U.S. assisted living facility market is highly competitive due to numerous organizations offering similar services and community-based service programs. The key player accounts for the major industry share in the U.S. assisted living facility market. Due to their high geographical presence, the availability of expertise, and the well-known brand image, the companies have a better market share in the United States. The key players in the U.S. assisted living facility market include AlerisLife, Atria Senior Living, Brookdale Senior Living, and Enlivant Living. Aleris Life is a company dedicated to offering a dynamic range of residential and lifestyle services tailored to the needs of older adults. As a subsidiary brand, Aleris Life oversees two distinct divisions: AGILITY and FIVE STAR SENIOR LIVING COMMUNITY. By combining these divisions under the Aleris Life umbrella, the company is actively shaping the future of senior living.