Exponential Growth in the U.S. Assisted Living Facility Marketby Susan Hill Business Consultant
The U.S. assisted living facility market size is expected to reach USD 121.2 billion by 2026, according to a new report by Grand View Research, Inc., registering a 6.4% CAGR over the forecast period. Increasing awareness and desire of consumers to age in home-based services is driving the growth of the market. In addition, lower cost of assisted living facilities (ALFs) as compared to nursing homes will propel the market.
Growing geriatric population in need of supportive environment and continuous care will fuel the growth of the market. According to the U.S. Census Bureau, by 2030, all baby boomers will be older than 65 years. According to the Rural Health Information Hub, 78 million people will be 65 years or older by 2030 and this number is expected to rise to 90 million by 2050. Presently, the highest number of assisted living facilities are in the southeast part of the country and they accounted for about 23.0% of all assisted living facilities in the U.S. Furthermore, there is a high tendency of retirees moving to the Sun Belt region in the U.S. owing to a warm and sunny climate, availability of new and comfortable housing styles, and rising recreational opportunities. This is expected to propel the market in this particular region.
Competition in the market is very high and strict regulations and licensing are expected to pose barriers for new entrants. Major participants in the market include Sunrise Senior Living, LLC; Brookdale Senior Living Solutions; and Atria Senior Living, Inc. Furthermore, rise in the cost of utilities, food, real estate taxes, and insurance could negatively affect the market.
Further key findings from the report suggest:
- By gender, women held the maximum share in 2018 and the segment is
predicted to exhibit the fastest growth over the forecast period. This can
be attributed to greater life expectancy of women and higher rates of
disability and chronic health problems
- On the basis of age, the more than 85 years segment dominated the
U.S. market in 2018. This segment is expected to expand at the fastest
pace through 2026
- Increasing regulations on ALFs to ensure proper care and coordinated
services could restrain the growth of the market. In the U.S., state-level
regulation is enforced for licensing and certification and may vary in
- Strategic initiatives undertaken by various market players are
expected to keep growth prospects upbeat in the following years. In May
2016, Brookdale Senior Living Solutions invested about USD 8.0 million on
its Florida senior living facility. Expansions such as these are likely to
boost U.S. assisted living facility market growth
- Some of the leading market players are Kindred Healthcare, Inc.; Atria Senior Living, Inc.; Integral Senior Living; Brookdale Senior Living Solutions; Five Star Senior Living; Sunrise Senior Living, Inc.; Capital Senior Living; Merrill Gardens; Gardant Management Bradley; and Belmont Village Senior Houston.
Access full research report on U.S. assisted living facility market:
Created on Mar 16th 2020 05:05. Viewed 229 times.