The Cost of Assisted Living in 2025
When you or a loved one needs help with everyday activities, like medication management or cooking, but wants to maintain independence, assisted living could be an option worth considering.
Assisted living facilities offer individual apartments with staff available to help residents with personal care needs such as toileting, dressing, and eating. While many people like the security and peace of mind provided by onsite care services in these communities, the cost can be significant.
What is assisted living?
Assisted living is a senior living community that offers a private room or one-bedroom apartment with a bathroom, and, often, a kitchenette.
The facility tends to have a dining room for communal meals and a broad selection of social activities that provide opportunities to make friends and socialize with others.
Assisted living personnel can help with the activities of daily living (ADLs) such as bathing, dressing, toileting, transferring into and out of bed or chairs, and eating.
Personnel can also help with medication management, shopping, housekeeping, and transportation.
The beauty of assisted living is that residents can get the level of care they need. Pricing is tiered, so those who require a little help may pay less than those who have additional care options.
The facilities do not offer the skilled nursing care a nursing home offers, although medical professionals are usually onsite or on call in case of emergencies.
Many assisted living retirement communities also have memory care units for those with Alzheimer’s and other types of dementia.
But, how much does assisted living cost? Let’s take a look.
What is the average monthly cost for assisted living?
According to the annual Genworth Cost of Care surveys, the national average cost of assisted living is around $5,900 per month for 2024 (the last reported data).
This comes out to $70,800 annually. However, costs vary significantly based on location, level of care needed, and the specific facility. Prices vary widely among states and among cities within a state. For example, here are some prices around the country:
California $7,350
Florida $5,324
Illinois $5,836
Massachusetts $9,058
Mississippi $4,445
Missouri $5,150
New Hampshire $7,431
New York $6,300
Many assisted living facilities charge a move-in or community fee of between half a month to two months rent. This fee covers a health and wellness assessment to determine your general health and the level of necessary care.
Other senior care options
While the monthly fees are high, they can be much less expensive than other senior living options.
Skilled nursing homes are typically the most expensive, costing around $9,277 monthly for a semi-private room. A home health aide, working 44 hours per week, costs about $6,483 per month.
While family caregivers often help without pay, you may still need a home health aide for additional support at $36.83 per hour, and these costs can add up quickly.
What factors influence the cost of assisted living facilities?
Assisted living communities have different price points, based on where they are and what they offer.
Location: Costs are higher in urban areas and other regions with a higher cost of living.
Level of care: Higher levels of care (e.g., memory care) typically cost more.
Amenities: Facilities with more amenities (e.g., swimming pools, on-site dining) generally have higher costs.
Room size and type: Private rooms are usually more expensive than shared rooms.
Reputation and quality: Highly-rated facilities with excellent reputations often have higher costs.
How is most assisted living care usually paid for?
Since Medicare does not pay for assisted living, people must dig into their own resources or find other programs to help cover the costs.
If you run out of money at an assisted living facility, you may have to move to a new residence, so it’s important to find a place you can afford for the long run.
Private pay: This is the most common method, where residents or their families cover the costs out-of-pocket. They may use savings, sell their home, withdraw funds from their 401K or annuities, sell stocks, use life insurance policies, or continue to bring income from rental property or work. Some even get a reverse mortgage on their home, which provides money up front.
Long-term care insurance: Some policies may cover a portion of assisted living expenses.
Veterans benefits: Certain veterans may qualify for aid and attendance benefits to help with assisted living costs.
Medicaid: In some cases, Medicaid may cover assisted living costs, but eligibility requirements are strict. Many states offer waivers that pay for personal care but not for room and board.
How do you find the right senior care to fit your budget?
Research thoroughly: Contact local agencies on aging, visit facilities, and compare costs and services. Senior living consultants and Aging and Disability Resource Center (ADRC) counselors in your area can provide guidance during your search.
Consider your needs: Determine the level of care required and prioritize essential services. Plan for the future, as your needs may escalate. Note the pricing structure for additional services in case you need them.
Explore payment options: Investigate potential funding sources like long-term care insurance or government programs that may subsidize housing.
Negotiate rates: Some facilities may be willing to negotiate prices, especially for long-term stays.
Is assisted living tax deductible?
Assisted living fees for non-medical care are not deductible, but the IRS may allow some deductions for those in assisted living. Check with your tax advisor to understand what is and isn’t deductible.
Can you afford senior living in an assisted living facility?
The costs of assisted living may seem high for your budget. Before deciding it is too costly, talk to a senior housing expert to see what your options are.