Cost and Affordability of Long-Term Care: Trends, Data, and Planning (2019–2024)

Long-term care is one of the most important and often overwhelming topics families face as loved ones age. Whether it’s assisted living, a skilled nursing facility, or in-home support, long-term care is rarely cheap. In fact, the cost of care has steadily increased over the last five years and shows no signs of slowing down. For many families, the biggest concern is simple but urgent: how can we afford long-term care without draining our savings or risking our financial future?

This article breaks down the actual costs of long-term care from 2019 to 2024, why those costs are rising, and what options families have for better planning. We also include answers to common questions and show you how FindCarez.com can be used as a helpful tool in comparing local care options and understanding the affordability landscape.

What Counts as Long-Term Care?

Before we dive into costs, it’s important to clarify what we mean by “long-term care.” This term refers to a range of services designed to help individuals who can no longer perform basic activities of daily living (ADLs) such as bathing, dressing, and eating.

Long-term care includes:

• Nursing homes (also called skilled nursing facilities)
• Assisted living facilities
• In-home care (including personal care aides and home health aides)
• Adult day care services
• Programs like PACE (Program of All-Inclusive Care for the Elderly)

These services are either provided at home or in residential care communities. Most long-term care is not covered by Medicare, and while Medicaid does provide support, many people don’t qualify without spending down most of their assets first.

Rising Long-Term Care Costs (2019–2024)

Over the past five years, the cost of long-term care has increased significantly. Here’s a breakdown of what you can expect to pay today and how those numbers have evolved.

Nursing Homes

• In 2019, the average annual cost for a semi-private room in a nursing home was about $90,000.
• As of 2024, that number has climbed to $108,000 nationally, with private rooms averaging closer to $125,000 per year.
• In states like Michigan, the cost of a private room in a nursing home is around $8,200 per month, or nearly $99,000 per year.

The increase is largely driven by labor shortages, rising wages for care workers, and facility closures post-COVID that have tightened availability.

Assisted Living

• The median cost of assisted living was $48,000 per year in 2019.
• In 2024, that number is approximately $54,000 annually, though in metropolitan areas, it can exceed $70,000.

Unlike nursing homes, assisted living is usually paid out-of-pocket unless the resident qualifies for specific Medicaid programs or Veterans benefits.

In-Home Care

• In 2019, the hourly cost of a home health aide was around $23 per hour.
• In 2024, it's closer to $33 per hour, especially in urban and coastal areas.
• That means 24-hour in-home care now costs upwards of $290,000 annually, making it the most expensive form of care for those needing constant assistance.

According to Genworth and caregiver forums like Reddit’s r/AgingParents, families in states like California or New York are now seeing quotes of $12,000 or more per month for live-in care.

Why Are Long-Term Care Costs Increasing?

There’s no single reason behind the rising costs, but several trends explain the spike:

1. Workforce Shortages: Since the pandemic, there’s been a critical shortage of nursing assistants, home health aides, and support staff. To attract workers, providers are raising wages, and those costs are passed to consumers.
2. Inflation: Healthcare services have seen some of the highest inflation rates of any industry since 2020.
3. Facility Closures: Hundreds of nursing homes closed during or after COVID-19, especially in rural areas. Lower supply means higher prices.
4. Low Uptake of Long-Term Care Insurance: Fewer than 15% of adults have long-term care insurance, and premiums for those policies have risen sharply, leaving more people to pay out-of-pocket.

How Families Are Struggling with Affordability

According to a 2023 survey by the Kaiser Family Foundation (KFF), more than half of families with long-term care needs reported cutting spending on essentials to afford care. Nearly 40% had used up savings, and about one-third incurred debt. These stats tell a sobering story — the financial strain is real.

The burden doesn’t just affect seniors. A growing number of Gen Xers and Millennials are providing or funding care for aging parents, often reducing their work hours or quitting jobs. That loss of income has ripple effects on their own retirement and savings plans.

Planning Ahead: What You Can Do

Despite the challenges, there are ways to prepare and manage the financial side of long-term care:

1. Start Early

Ideally, planning should begin before age 60. This includes researching options, exploring long-term care insurance or hybrid life insurance, and calculating potential costs.

2. Use FindCarez.com

FindCarez.com lets families compare costs for senior care facilities, in-home support, and caregiver options in their local area. It’s an easy way to get realistic estimates and understand what levels of care are available.

3. Consider Home Modifications

Instead of institutional care, some families invest in making the home safer and more accessible. These modifications usually cost $3,000 to $15,000, much less than a year in a care facility.

4. Look Into Medicaid Waiver Programs

Many states offer Home and Community-Based Services (HCBS) waivers that allow people to receive care at home while still qualifying for Medicaid. These programs can be a lifeline for families caught in the affordability gap.

5. Talk to an Elder Law Attorney

They can help with Medicaid planning, asset protection, and navigating benefits like Veterans Aid and Attendance.

Frequently Asked Questions (FAQs)

Q1: What is the average cost of long-term care in 2024?

A: It depends on the type of care. Nursing homes average about $108,000 per year, assisted living about $54,000, and in-home 24-hour care can cost over $290,000 annually.

Q2: Will Medicare cover long-term care?

A: No, Medicare only covers short-term rehab or skilled care after hospitalization. It does not cover custodial care, which is what most long-term care consists of.

Q3: What options exist for people who cannot afford long-term care?

A: Medicaid, local state programs, Veterans benefits, and community-based resources may help. Families should explore waivers and consult FindCarez.com for affordable care options in their area.

Q4: Is long-term care insurance worth it?

A: It can be, especially if purchased earlier in life. But premiums have risen sharply, and many plans limit coverage. Hybrid policies (life insurance with LTC riders) are becoming more popular.

Q5: How do I estimate future long-term care costs?

A: Use online tools or resources like FindCarez.com to look at current local costs, and then apply a conservative inflation rate (4% to 5% annually) to estimate future needs.

Final Thoughts

Affording long-term care is one of the biggest financial planning challenges today. Over the past five years, costs have risen dramatically across all forms of care. While the numbers can seem overwhelming, families can take proactive steps to plan, save, and explore alternative care solutions.

Tools like FindCarez.com make it easier to research options and understand the true costs in your area. Whether you're planning for yourself, your parents, or another loved one, the key is to start early, gather good data, and stay informed. You don’t have to face these decisions alone — and with the right approach, quality long-term care can still be within reach.