As America’s population continues to age at an unprecedented rate, the need for effective, high-quality senior living solutions has never been more pressing. Argentum has released an updated edition of The Value of Assisted Living in America, an industry-leading report that underscores the crucial role assisted living communities play in providing cost-effective care, improving residents’ quality of life, and reducing healthcare expenditures for public programs like Medicare and Medicaid.
The Growing Need for Senior Living Solutions
Every day, more than 10,000 Americans turn 65, and the 85 and older population (average age of an assisted living resident) is projected to more than double from 6.6 million in 2019 to 14.4 million in 2040 (a 118% increase). By 2030, all baby boomers will have reached 65 years old and for the first time in history, older adults will outnumber children in the United States. However, despite this rapid demographic shift, there remains a substantial shortfall in the availability of assisted living communities. According to the National Investment Center for Seniors Housing and Care (NIC), approximately 881,000 additional units of assisted living inventory will be required by 2030, with development costs exceeding $1 trillion by 2050.
Without sufficient investment and policy support, seniors may face limited choices, higher costs, and inadequate care options. The report highlights the holistic benefits of assisted living, demonstrating that it is not only a more affordable alternative to institutionalized care but also significantly improves resident satisfaction and well-being.
A Model That Works: Quality Care at Lower Costs
The latest findings reinforce what industry experts and families have long known—assisted living communities provide an environment where seniors thrive. A U.S. News & World Report survey of older Americans found that 99% of respondents felt safe in their senior living community, and 94% were happy with their choice. Additionally, the 2024 J.D. Power Senior Living Satisfaction Survey revealed a significant increase in satisfaction scores, driven by positive perceptions of affordability, staff care, and community facilities.
Compared to living alone, where social isolation is a growing health concern, assisted living offers a dynamic and supportive community. A national survey of more than 130,000 assisted living residents found that only 14.3% reported feeling lonely, compared to nearly 30% of seniors who live independently. Studies show that social engagement is a critical factor in maintaining mental and physical health, and assisted living communities actively foster opportunities for socialization through planned activities, group dining, and wellness programs.
Economic and Social Benefits of Assisted Living
The financial advantages of assisted living extend beyond individual families to broader public programs such as Medicare and Medicaid. By offering a more cost-effective alternative to skilled nursing facilities, assisted living helps alleviate the strain on government resources. Assisted living residents experience better health outcomes, reducing hospital readmissions and emergency room visits. This, in turn, leads to lower overall healthcare costs, benefitting taxpayers and ensuring that limited funds are allocated efficiently.
Moreover, assisted living communities play a significant role in local economies. They generate employment opportunities across various fields, including healthcare, hospitality, food service, and administration. According to workforce projections, the senior living industry will require more than 20 million workers by 2040, making it one of the fastest-growing employment sectors in the country. However, workforce shortages remain a challenge, and targeted policies are necessary to address this critical issue.
Argentum Policy Solutions to Ensure Access and Affordability
With demand for assisted living surging, policymakers must act to ensure more seniors have access to quality care. The Value of Assisted Living report presents several key policy recommendations to support affordability, workforce expansion, and access to services:
- Improving Access for Veterans: Many veteran benefit programs designed to support long-term care are underutilized. By optimizing the Aid and Attendance benefit, more veterans could receive care in assisted living rather than relying solely on Medicaid.
- Expanding Workforce Training Programs: Federal legislation could establish workforce training initiatives specializing in senior care to meet the needs of an aging population.
- Supporting Family Caregivers and Social Engagement: The SENIOR Act and the Care Across Generations Act propose measures to keep seniors socially engaged and assist caregivers with reliable childcare options.
- Investing in Workforce Development Through Tax Reforms: The Improve and Enhance the Work Opportunity Tax Credit Act would provide incentives to recruit and retain caregivers.
- Strengthening Long-Term Care Insurance and Public Program Reimbursements: Adequate reimbursement rates for assisted living communities are essential to expanding access to care.
- Encouraging Investment in Senior Housing Development: Given the projected shortfall of assisted living units, policies that incentivize development through tax credits, low-interest loans, or public-private partnerships can help bridge the gap.
Advocating for the Future of Senior Living
As Argentum convenes at the 2025 Public Policy Institute in Washington, D.C., these findings will serve as the foundation for discussions with lawmakers on Capitol Hill. Ensuring that every senior has access to high-quality, affordable care is a policy priority that requires immediate attention and action. Policymakers must recognize the essential role assisted living plays in the continuum of care and take decisive steps to support its sustainability and growth.
For those who are not able to attend PPI, we are calling on all Argentum Advocates to join us in our day of action by sending pre-written letters to Congress in support of these efforts! All you have to do is click here, add your contact information, and click “Send message.” That’s it!
The more messages that lawmakers receive, the more likely they are to review the legislation and cosponsor it. And with more than 100 senior living advocates on Capitol Hill this week, your messages have an outsized impact in spreading the word on the importance of our priority bills.
For those interested in the full report and its policy recommendations, we encourage you to download The Value of Assisted Living in America today. Together we are advocating for a future where every senior can access the care and community they deserve. Help us create solutions that prioritize dignity, affordability, and quality of life for all aging Americans.
