Does It Make More Financial Sense to Live at Home or Move to Assisted Living?
- agewisehome
- Aug 10
- 3 min read
As we near the end of 2025, the question of whether it’s financially smarter to age in place or move to an assisted living community has become even more complex. Senior care costs have risen nationwide, and family circumstances often play as big a role as finances.
This blog provides the latest 2025 cost of care data, insight from real-life planning experiences, and clear steps you can take to make the right decision for yourself or a loved one.
2025 Cost Comparison: At Home vs. Assisted Living vs. Nursing Home
1. Aging in Place at Home
Median hourly rate for a home health aide: $33/hour
Average monthly cost for 40 hrs/week: $5,000+
Accessibility modifications: $1,000–$15,000+ one-time cost
Annual home maintenance & repairs: $3,000–$5,000+
Utilities, insurance, taxes: $500–$1,000+ per month
2. Assisted Living
National median monthly cost: $4,995
Cost range by location:
Lower-cost regions: $3,800–$4,800/month
Higher-cost regions: $6,000–$8,000/month
Included: Housing, meals, basic personal care, activities, utilities, and maintenance (care tiers may have add-on costs).
3. Nursing Homes
Private room: ~$315/day ($9,500/month)
Semi-private room: ~$280/day ($8,400/month)
National average cost: $100,000+/year
Medicaid & Payment Options
Depending on your state, Medicaid Waiver programs can help pay for assisted living care services (though not always room and board). Many residents combine:
Medicaid Waiver benefits
Social Security income
State Supplementary Payments (SSP)
This approach can make assisted living affordable for those with limited income — but room-and-board charges may still require personal funds or family contributions.
A Real-Life Example: Moving Closer to Family
I’ve been helping the parents of a close high school friend navigate this decision. They’re in their late 70s, already downsized into a one-level home with minimal stairs, and they’ve kept their long-term care insurance — something I recommended a decade ago.
Now they’re considering a move from their current home to San Diego, where most of their children live. Here’s what’s shaping their decision:
Family Support: Two sons in San Diego, another on the West Coast — being near them reduces reliance on outside caregivers.
Reduced Home Maintenance: No more roof repairs, lawn care, or costly seasonal upkeep. As the father told me, “I can’t get on that roof anymore to clean it off” — and frankly, he shouldn’t have been up there in the first place.
Long-Term Care Insurance: Will cover some in-home services Medicare does not, making the transition more affordable.
CCRC & Independent Living Options: They’re exploring continuing care retirement communities ranging from basic to luxury — all with different costs and amenities.
Future Financial Planning: Evaluating spend down options in case they outlive their savings, ensuring a smooth transition to Medicaid if needed.
While California’s assisted living costs are higher than what they currently spend, the combination of family support, insurance coverage, and proceeds from the sale of their home makes the move financially and emotionally worthwhile.
What You Should Do Next
1. Calculate Your Home Care Costs-Factor in home maintenance, in-home caregiver rates, utilities, insurance, and any accessibility modifications you’ll need over the next 5–10 years.
2. Compare Local Assisted Living Rates-Get quotes from at least three assisted living facilities in your area. Look at what’s included and what’s billed separately.
3. Take Advice from Professionals-Work with a Certified Aging-in-Place Specialist (like AgeWise Home) or senior living advisor to review both your financial and care needs.
4. Consider Your Long-Term Financial Path-Evaluate your savings, insurance coverage, and Medicaid eligibility — and understand the spend down process if you may need Medicaid later.
💡 Bottom Line:Your decision isn’t just about this year’s costs — it’s about balancing quality of life, available support, and future financial security. Whether you age in place or move to assisted living, careful planning now will save stress and money later.
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