How Often Do Assisted Living Facilities Raise Rates?

Most assisted living facilities raise rates once a year for the whole community. However, you could be subject to an individual rate increase if you need a higher level of care or added services. Before moving into an assisted living community, read your contract carefully. Some agreements spell out exactly how and when rates increase, while others may indicate that you have a fixed monthly cost for a set period.

Assisted living facilities increase rates by an average of 3.7% each year. For example, someone paying the average monthly rate of $4,500 would see their cost increase by about $166.50 to a total of $4,666.50 per month.

Assisted living facilities increase their rates to account for annual inflation. Communities face rising costs for services such as medication management and memory care, and they pass along these costs to the residents. Many assisted living communities also experience staffing challenges. They often rely on contract nurses and aides, which costs more than hiring full-time employees. When interviewing staff at each facility, asking questions about where they source their workers can help you understand the cost breakdown.

If rates go up in your community, you can potentially save money by downsizing to a smaller room (from a one-bedroom apartment to a studio, for example). You could also save by choosing an assisted living facility that charges only for the services you need, especially if you’re fairly independent and require only minimal help with daily activities. Geographic location plays a major role in the cost of assisted living. Some seniors save thousands of dollars each month simply by moving to an assisted living community in a more affordable state.