U.S. Assisted Living Facility & Neurorehabilitation Market Size, Share & Trends Analysis Report By Gender (Women, Men), By Age (More Than 85 Years, 75-84 Years, 65-74 Years, Less Than 65 Years), And Segment Forecasts, 2020 - 2027

Report Overview

The U.S. assisted living facility and neurorehabilitation market size was valued at USD 101.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of around 5.0% from 2020 to 2027. Individuals residing in Assisted Living Facilities (ALFs), largely senior citizens, seek companionship, security, and assistance with daily activities. An increasing number of Traumatic Brain Injury (TBI) survivors seeking neurorehabilitation and residential care and growing geriatric population are the key factors driving the market for assisted living facility and neurorehabilitation. According to the UN estimates, in the U.S., 1 out 5 will be aged 65 years and above by 2050. The U.S. has a significantly high geriatric population, as advancements in medicine and technology have increased life expectancy.

About 7 out of every 10 people in assisted living facilities depend on their personal wealth or their families to pay for their services. To make such a facility more affordable for low-income individuals, several states are making changes to the regulations of Medicaid applicable to any assisted living facility. An assisted living facility does not abide by federal regulations, therefore, cannot claim Medicare reimbursement. This is the major restraining factor as the cost is one of the primary factors potential tenants take into consideration while forming their decisions. However, this scenario is anticipated to improve as almost 40 states either provide or are planning to partially reimburse these services through Medicaid.

Increased life expectancy, growing income from the senior population, and the desire to live in senior housing communities for better healthcare and quality of life are expected to fuel the market for the assisted living facility and neurorehabilitation over the forecast period. Adults suffering from various mental illnesses require prolonged assistance to sustain in mainstream society. In the U.S., mental illness was considered to be the most expensive disorder. This is expected to render exponential growth in the assisted living facility and neurorehabilitation industry. Many assisted living facilities offer special treatment for the survivors of Traumatic Brain Injury (TBI).

Gender Insights

Women held a revenue share of around 70.0% in 2019 in the market for assisted living facility and neurorehabilitation. Women will also emerge as the fastest-growing segment over the course of the forecast period. On the basis of gender, the market for assisted living facility and neurorehabilitation is segmented into women and men. An assisted living facility is a long-term senior care facility that provides personal care support services, such as social and recreational activities, housekeeping, meals, exercise, and wellness services. The greater life expectancy of women, higher rates of disability and chronic health problems, and lower-income compared to men are some of the major factors behind the dominance of this gender group in any assisted living facility.

Age Insights

The more than 85 years age segment accounted for the largest share of around 52.0% in 2019 in the market for assisted living facility and neurorehabilitation. The segment is also predicted to register the fastest growth rate over the forecast period. On the basis of age, the U.S. Assisted Living Facility and neurorehabilitation market is segmented into more than 85 years, 75 to 84 years, 65 to 74 years, and less than 65 years. According to the data published by the U.S. Department of Health and Human Services in April 2018, the age group of 65 and above increased by 33.0% from 2006 to 49.2 million in 2016 and is projected to reach 98.0 million by 2060.

The population aged 85 years and above is projected to increase from 6.4 million in 2016 to 14.6 million by 2040. The growing geriatric population base demands for more assisted living facility and neurorehabilitation in the region. This is likely to increase the demand for professional caregivers and new assisted living facility offering neurorehabilitation. According to Aging.com, seniors in the U.S. will need about two million housing facilities by 2040 to provide adequate living space for those in need of care.

The concept of continuing care retirement communities has been gaining traction among seniors with stable financial means. Such a facility is known to cater to tenants as young as 50 years of age. The idea behind these communities is that “seniors” do not have to relocate when additional care is needed as time passes. As a result, the less than 65 years segment in the market for assisted living facility and neurorehabilitation is likely to receive a moderate boost over the forecast period.

Country Insights

On the basis of region, the market for assisted living facility and neurorehabilitation is categorized into West, South, Midwest, and Northeast. The West region dominated the segment with the largest market share in 2019, which can be attributed to an assisted living facility located in the region. The South is expected to witness high growth owing to the growing senior population and rising demand for senior care facilities providing neurorehabilitation.

According to midyear estimates published by the U.S. Census Bureau, around 16.0% of the U.S. population was aged 65 years or above in 2018, and the median age in the U.S. was expected to increase from 37.2 years in 2010 to 38.2 in 2018. A prediction from the Census Bureau suggested that the seniors’ population will surpass the children by 2035.

The growing geriatric population in the country generates demand for assisted living facilities and neurorehabilitation, and this varies from region to region. More than 20% of the residents in Florida and Maine are 65 years or older, and this share is greater than the average in 28 other states, including Vermont, West Virginia, and Montana. Alaska and Utah have the lowest number of senior residents, with a share of around 11.8% and 11.1%, respectively.

Key Companies & Market Share Insights

The competitive landscape of the U.S. assisted living facility and Neurorehabilitation industry is distributed among national comprehensive rehabilitation companies and specialized post-acute traumatic brain injury companies. Kindred Healthcare, LLC and Encompass Health Corporation are the key players in terms of strategic initiatives and service portfolios. Neurorestorative, The Mentor network, and Pate Rehabilitation are among the leading post-acute care providers for traumatic brain (TBI) injury survivors. Acquisition and partnerships are some of the key strategies followed by the major players in the market for assisted living facility and neurorehabilitation. For instance, in January 2020, NeuroRestorative partnered with Main Line Rehabilitation Associates, Inc. located in Pennsylvania, to expand its post-acute TBI service portfolio. Main Line Rehabilitation Associates provides community-based and support services to patients who suffered a brain injury. Some of the prominent players in the U.S. assisted living facility and neurorehabilitation market include:

• Centre For Neuro Skills

• Mary Lee Foundation

• NeuroRestorative

• The MENTOR Network

• Pate Rehabilitation

• ResCare, Inc.

• Texas NeuroRehab Center

• Texas Rehabilitation and Habilitation Specialists, LLC

• Moody Neurorehabilitation Institute

The U.S. Assisted Living Facility & Neurorehabilitation Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the U.S. assisted living facility and neurorehabilitation market report based on gender, age, and country:

• Gender Outlook (Revenue, USD Billion, 2016 - 2027)

  • Women

  • Men

• Age Outlook (Revenue, USD Billion, 2016 - 2027)

  • More than 85 years

  • 75-84 years

  • 65-74 years

  • Less than 65 years

• Country Outlook (Revenue, USD Billion, 2016 - 2027)

  • West

  • South

  • Midwest

  • Northeast