Is Staying at Home Really Less Expensive Than Senior Living?

A recent report from the American Seniors Housing Association (ASHA), The Economic Case for Senior Living, takes a more complete look at the costs of aging at home compared with moving to a senior living community. The findings don’t suggest that senior living is always less expensive or that staying at home is always more expensive. Instead, they highlight the importance of considering the total cost of both choices.

Once you do, the difference may be smaller than you think.

What Does It Really Cost to Stay at Home?

A paid-off house isn’t a free house. There are still property taxes, homeowners’ insurance, utilities, maintenance and repairs, along with expenses such as landscaping, housekeeping and transportation.

ASHA’s report provides an example of an older adult living in a mortgage-free home valued at $400,000. Even without a mortgage payment, the estimated monthly cost of staying in that home totals about $4,000. That includes $880 for home maintenance, $470 for utilities, $440 for property taxes and $160 for homeowners’ insurance. It also factors in everyday expenses that are often included in senior living fees, such as meals, housekeeping, transportation, an emergency alert system, and social and entertainment costs.

And that $4,000 estimate doesn’t include the cost of home modifications that may eventually be needed to make aging at home safer or easier, such as an accessible bathroom, entryway changes or other renovations.

That’s an important distinction. As McKnight’s Senior Living reported in its coverage of the ASHA research, the “sticker shock” associated with senior living often comes from comparing a community’s more comprehensive monthly fee with only a portion of the expenses involved in staying at home.

For a fair comparison, start by adding up what you actually spend to live at home not just your mortgage payment.

What Happens When You Add Home Care?

For older adults who need help with activities of daily living, the cost of staying at home can change quickly.

According to the 2025 Cost of Care Survey, a home health aide costs $35 an hour. Four hours of care a day, five days a week, adds approximately $2,800 a month. Add that to the roughly $4,000 in monthly living expenses in ASHA’s mortgage-free home example, and the total comes to about $6,800 a month nearly identical to the $6,787 average monthly cost of assisted living reported by NIC MAP.

And that’s based on just 20 hours of home care a week. Senior Housing News, in its coverage of the ASHA research, noted that when the ongoing costs of living at home are combined with more than 20 hours of home care per week, the total can exceed the cost of both assisted living and memory care.

Think About How Costs and Care Needs May Change

Today’s costs are only part of the picture. Staying at home can bring unexpected expenses, from a new roof or furnace to rising taxes, insurance premiums, HOA fees or home modifications. In fact, the ASHA report notes that homeowners’ insurance premiums have risen 17% since its previous analysis in 2024, while HOA fees have increased 10% to 20%, depending on the market.

Care needs can change, too, requiring families to arrange and pay separately for home care, transportation, meal delivery or other services. Senior living costs rise over time, too, but many everyday expenses and services are bundled into one monthly fee and, depending on the community, additional support may be available as needs change.

So, when comparing the two options, consider not only what each costs today, but how well it can accommodate your needs—and your budget—in the future.

Your Home Is Part of the Financial Picture, Too

Another piece of the puzzle that’s easy to forget is the value of the home itself.

For many older adults, a home is their largest financial asset. Choosing to stay means keeping that wealth tied up in the property. Selling the house can put that equity to work toward paying for senior living and future care while eliminating the ongoing costs and responsibilities of homeownership.

That doesn’t mean you should sell a home simply because it has appreciated in value. Your home may have deep emotional significance, and finances are only one factor in deciding where you want to live.

But home equity belongs in the conversation when you’re evaluating what you can afford.

Look at What You’re Paying For, Not Just the Price

If you stay at home, which services will you need to purchase separately? Who will handle meals, transportation, home maintenance and housekeeping? If you need care, who will provide it—and who will coordinate it?

Senior living fees generally cover many of those everyday needs. Communities also offer opportunities for social connection, activities and programs, dining, wellness and other services that may be difficult to put a dollar value on but can make a meaningful difference in daily life. And if your idea of senior living is based on what communities were like years ago, it may be worth taking another look.

The same is true of staying at home. Being close to longtime neighbors, living in familiar surroundings and remaining connected to a community you love have value, too.

That’s why this decision shouldn’t come down to just cost.

Make an Apples-to-Apples Comparison

The numbers may make senior living more financially competitive than many families expect, but cost alone doesn’t determine the right choice.

“Home care makes sense for many older adults,” says ASHA President and CEO David Schless. “The point is to make sure families are looking at the full financial picture—not simply comparing a senior living community’s monthly fee with only a portion of the costs of remaining at home.”

That means considering housing, utilities, food, maintenance, transportation, household help and care; how those costs and your needs could change; and what each option provides beyond the dollars and cents.

Once you put full cost side by side, you may find that the financial difference between staying at home and senior living isn’t as large as you thought. More importantly, you’ll be in a better position to decide which option makes the most sense for you. These four real-life scenarios can also help you think through which option may be the best fit.

Want to Learn More About Home Care?

If staying at home is one of the options you’re considering, explore our Home Care Today Study to learn more about the benefits, costs, and trade-offs of receiving care at home. The resource is based on research conducted by ATI Advisory for ASHA.

Ready to explore your options? Use our Community Finder to compare senior living communities in your area and connect directly with the ones that fit your lifestyle and needs.

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, educational opportunities, and networking for senior living executives to better understand the needs of older adults across the country.