Report Shows Median Costs for Homecare Increased Year Over Year

NEW YORK— A Place for Mom, a senior living advising company, published its 2026 report, “Costs of Long-Term Care and Senior Living,” which presented data showing homecare costs continued to rise from 2024 to 2025, increasing roughly 3%. 

The report also showed a multi-year upward trend for median costs across other major care types, including independent living, memory care and assisted living. A Place for Mom said the increase is reinforcing affordability as a growing concern for older adults and their families. 

The national median cost for homecare rose by roughly 3%, with costs averaging $33 an hour in 2024 now reflecting $34 an hour; independent living rose from $3,145 a month to $3,200 a month; assisted living had the highest percentage jump from $5,190 a month to $5,419 a month. Memory care rose from $6,450 a month to $6,690 a month.

The report highlighted how cost varies by state. When broken down, the report showed Alabama, Louisiana and Mississippi had the lowest cost for homecare per hour, with Alabama approximating $26 per hour and Louisiana and Mississippi equaling $25 per hour. South Dakota ranked the highest for homecare costs at $44 per hour, with Vermont in the second-highest place at $43 per hour.

“Homecare cost data in this report was captured Jan. 9, 2026, and is based on hourly starting rates shared by 3,215 homecare agencies in A Place for Mom’s network,” the organization said. “Actual homecare costs vary based on the amount and type of care provided. Because schedules and needs differ, homecare costs in this report are shown as hourly rates rather than fixed monthly totals. The national median hourly rate provides a general reference point, but a family’s total monthly cost will depend on how many hours of care are arranged.”

The Cause for the Increase in Costs

The organization said several structural factors are contributing to the rising costs. Workforce constraints continue to put upward pressure on wages for caregivers and support staff. At the same time, inflation-driven increases in operating expenses—including food, utilities, insurance and maintenance—have raised the cost of delivering services. In many markets, post-pandemic occupancy demand has strengthened while new senior housing construction remains limited, tightening supply and supporting higher prices.

The report also showed apartment size plays a meaningful role in senior living costs, though the size-related premium varies by care type and market. Across states, studio apartments are typically the most affordable option, while one- and two-bedroom units command higher monthly rates.

To access the full report, click here.