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What Is the Inflation Rate on Assisted Living?
Date Updated: July 26, 2024
Written by:
Rachel Lustbader is a writer and editor with a background in healthcare and technology. Her work has been published on websites including HealthCare.com, BiteSizeBio.com, BetterHelp.com, Caring.com, and PayingforSeniorCare.com. She studied health science and public health at Boston University.
Both of Rachel’s grandmothers had very positive experiences in senior living communities, and Rachel saw firsthand the impact that kind, committed caregivers and community managers can have on seniors’ and their family members’ lives. With her work at Caring, Rachel hopes to help other families find communities, caregivers, and at-home products that benefit elderly loved ones and make life less stressful for family caregivers
From 2019 to 2022, assisted living costs increased by an average inflation rate of 3.7%. In comparison, the overall U.S. inflation rate was about 15.6% during the same period.
Despite the relatively low inflation rate for assisted living during this period, costs rose at a much higher rate in some states. Assisted living expenses increased by about 28% per year in Hawaii, 25.3% in North Dakota and 17.6% per year in Montana.
On the other hand, the cost of assisted living decreased in many states during this period. Prices went down by about 15.3% in South Dakota, 9.2% in West Virginia and 8.2% in Louisiana on average. Many communities in these states have offered discounts and incentives to new residents to combat high vacancy rates, which accounts for the lower cost of care.
What is the average cost of assisted living?
According to the 2021 Genworth Cost of Long-Term Care Survey, assisted living costs in the United States average $4,500 per month, which translates to about $54,000 per year. The national average cost of assisted living increased by about 4.65% from 2020 to 2021, with a 5-year annual growth of 4.4%.
These costs don’t include fees other than those for monthly room and board. For example, up to 70% of assisted living communities charge a one-time, nonrefundable admission fee. Before deciding to move to a facility, carefully review the contract to make sure you understand all the associated costs.