Can I Afford Senior Housing?

How to afford senior housing? It’s a question that lingers in the back of many minds as we age. Study after study shows most older adults hope to stay in their homes for as long as possible. But the financial strain that comes with the unpredictability of today’s economy, inflation, rising home prices, property taxes, maintenance costs and utilities, aging in your house may be a luxury you can’t afford.

And then there’s the reality that a single unexpected health issue could change everything. If that happens, will you be able to afford to stay in your house, especially with the rising cost of in-home care?

Is Senior Housing the Solution to Rising Costs?

Beyond care and support, senior living communities offer comfort, connection, safety and an easier way of life. But can you afford it? Whether you’re picturing a cottage with friendly neighbors, an apartment filled with engaging activities or an assisted living suite with personalized care, many assume these options may be out of reach.

“The truth is, senior housing is actually a smart solution to the rising costs of aging in place,” says David Schless, President and CEO of the American Seniors Housing Association (ASHA). “When you take a closer look at the full picture — including the overlooked expenses of maintaining a home and the higher costs of in-home care — a senior living community is more affordable than you might expect, and in many cases, less expensive than staying in your house.”

Let’s break it down:

What Are You Paying for Now?

Even if your mortgage is paid off, there’s a cost to homeownership. There are ongoing expenses to maintain your home’s value—whether through your own labor or by hiring professionals. There is also a cost to making  your home more senior friendly.  According to Investopedia, you can expect to pay anywhere between $4,000 and $22,000 annually depending on your home’s age, condition, size, location and features.

Terrence O’Malley, an estate planning lawyer and elder law attorney, calls this expense your invisible mortgage. When discussing it with seniors, he asks, “If you deposited $100,000 into the bank and your banker told you that you have to pay $5,000 a year just to keep the value of your deposit at $100,000, would you take that deal?”

Now think about other costs of staying in your house – taxes, insurance (Investopedia estimates the average cost of homeowners insurance in 2025 is $2,601) and association dues. Work in the cost of utilities (gas, heat, water, sewer). While utility costs fluctuate, Investopedia reports that today, the average is $583 per month. Then consider related expenses such as groceries, entertainment, dining out, membership dues to gyms or the country club. And don’t forget about car insurance, maintenance and gas.

What Will You Pay for in the Future?

Will your home need any major repairs in the next year or so? Maybe, a new roof, heating or cooling system, or driveway? Those could cost thousands of dollars.

If you plan to age in your house, you need to think about remodeling for safety and convenience. According to the Center for Disease Control’s Older Adult Fall Prevention data, more than one out of four Americans age 65 and older fall each year, and one in five falls cause serious injury. So, it might be necessary to modify your home to accommodate your changing needs.

Small projects, such as adding grab bars in the bathroom can cost between $154-$389 for a single grab bar according to recent figures by Homewyse. More extensive renovations can add up. For example, remodeling a bathroom by widening the doorway to be wheelchair accessible, reinforcing walls to support grab bars, putting in a comfort-height toilet, zero-threshold shower and sink you can sit at – could cost anywhere between $5,000 and $20,000 according to Home Design Planner.

The anticipated impact of new tariffs could make home renovations even more expensive. With costs rising for essential housing-related items like HVAC systems, building materials, and appliances, the price of making a home safe, accessible, and comfortable for later years may climb higher than expected.

The Cost of Future Health Care

Also you need to factor in the cost of future health care. According to the most recent data by CareScout, home care for in-home companions costs around $33 per hour, while a home health aide costs about $34 per hour. Even if you only need four hours of care per day, five days a week, with family helping on weekends, you’d still be looking at around $2,640 per month. However, most care guidelines, including those from CareScout, suggest that 44 hours of care per week is typical, bringing the monthly cost to about $5,808—similar to the cost of assisted living, without even factoring in the expenses of maintaining a home.

When you combine the $2,640 monthly cost of four hours of home care, five days a week, with the $3,725 cost of living in a median-priced home, the total comes to about $6,365 for housing and a modest level of home health care.

For more information on the cost of in-home care, read ASHA’s recent report, The Surprising Price of Staying in a House, which illustrates how in-home care services can dramatically increase the cost of aging at home, often exceeding the cost of senior housing where around-the-clock care, daily meals, and social engagement are included in the monthly price.

The Value of Senior Living Communities

“People might look at senior housing as expensive,” said Beth Burnham Mace, former Chief Economist for the National Investment Center for Seniors Housing & Care (NIC). “But you need to compare those costs to the costs of staying in your house as you age, as well as weigh them against the value of everything you get in a senior community.”

“More and more seniors are redefining their financial perspectives,” says O’Malley. “They’re focusing on what converting their illiquid investment – their house – can purchase to make their senior years among the best and happiest times of their lives.”

O’Malley said the deed to your house won’t pay for maintenance and housekeeping, security, transportation, health care, amenities and hospitality, entertainment and enrichment programs, and a social environment full of potential friends. “A deed won’t create a physically safe environment designed with seniors’ needs in mind, and where there are emergency responders and staff always at the ready.”

Mace added, “I’ve talked with people who, until they did the math themselves, couldn’t imagine they could afford senior living where residents enjoy maintenance-free living with a host of benefits that lead to healthier, more fulfilling lifestyle. Many times, it’s comparable, or even better, than staying in your house.”

Key Takeaways:

• Homeownership comes with hidden costs like maintenance, taxes, and utilities, especially as needs change.
• A single health issue can dramatically increase the cost and complexity of aging at home.
• In-home care costs can add up quickly, often surpassing senior housing expenses.
• Senior living communities bundle care, meals, and social activities into one predictable monthly rate.

So, How to Afford Senior Housing?

Moving to a senior living community can be a practical choice for those looking to cut housing costs. The inclusive monthly fees are often a more predictable and manageable cost compared to aging in place at home. As you explore your options, our Affordability Tool will help give a clear picture of what you can afford. You’ll get personalized results in about 3 minutes. Any information you share is private. We never spam you or sell your information.

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How to find affordable senior housing that’s right for you? Talk with a financial advisor, crunch numbers, read the fine print in senior living contracts, ask friends, and most importantly, visit communities to find the solution that fits your needs, goals, and budget. Find a community that’s right for you.

Where You Live Matters

Where You Live Matters is powered by the American Seniors Housing Association (ASHA), a respected voice in the senior housing industry. ASHA primarily focuses on legislative and regulatory advocacy, research, and educational opportunities and networking for senior living executives, so they can better understand the needs of older adults across the country.