The Cost of In-Home Care Versus Senior Community Living

Many seniors have waited years — and maybe even decades — to enjoy their retirement. Often, retirement brings the joy of learning new things, catching up with friends, more family time and taking time out for yourself.

For some, those joys mainly take place in their home, while others prefer enjoying their senior years in communities.

But what are the benefits and drawbacks of each arrangement? What is the average cost of each of these senior living options? This 2024 updated guide is meant to help those comparing the finances between senior housing costs for living at home, receiving in-home care, and community living.

The Cost of Living at Home

AARP reports that 77% of seniors want to stay in their homes for as long as they can. A person’s house offers familiarity and memories, but as we age, living at home might not be the best option, physically or financially.

For instance, taking care of a home and its surrounding property often requires physical work. Even for seniors who are relatively healthy and capable of living alone, doing yard work, regular cleaning, laundry, and home maintenance can become a burden. Often, these tasks become additional monthly expenses as caretakers are hired to perform them. 

On average, seniors can already be responsible for the following basic monthly costs when living at home:

• Mortgage or Rent: The median mortgage payment in the U.S. is $2,303, according to the National Association of Realtors. For those who opt to rent, the average rent for a one-bedroom apartment is $1,414, according to research by Apartment List.
• Home or Renter’s Insurance: The average monthly cost of home insurance is $126, according to Lending Tree, while renter’s insurance costs an average of $14 a month, according to the Insurance Information Institute.
• Utilities: The monthly cost of utilities can range for seniors depending on their usage, the time of year and where they live. On average, seniors can expect to pay the following, according to information compiled by Move.org:
  • Electricity: $135.25
  • Gas: $90.62
  • Trash and Recycling: $25-$100
  • Water: $39.16

• Internet, Phone and Streaming: Seniors will pay about $209 a month for phone, internet, and streaming, according to Move.org.

These standard expenses to operate a home can cost seniors between around $2,000 to $3,000 each month, before including other essentials such as food and transportation. 

Here are the monthly averages for groceries, transportation and other necessities:

• Groceries: The average monthly grocery bill for one person in the U.S. is about $257, according to USA Today.
• Housekeeping: The average cost for a housekeeper to clean a home is $177, according to Home Advisor. This can range based on the size and condition of the house.
• Lawn Care: Basic lawn care services can range from $40-$80, depending on the size of the lawn and the amount of work needed, according to Home Guide.
• Transportation: Lending Tree says Americans spend $9,826 a year — or about $819 a month — on transportation, including vehicle payment, gasoline, insurance, public transportation, and travel.

Adding these essentials, a senior’s cost of living at home increases to between around $3,200 and $4,300 each month.

In addition to these typical homeowners’ expenses, seniors might also need the following services, depending on their health and the status of their home:

• Emergency call service
• Fitness club membership
• Health and wellness
• Laundry services
• Maintenance and home repairs
• Security system

Including these services can bring a senior’s monthly living expenses to over $5,000.

The Cost of In-Home Care

According to AARP, 65% of adults surveyed over 50 said they preferred to stay in their home and have someone care for them if they were no longer able to live on their own.

While having in-home care can allow seniors to remain in familiar surroundings, it can also be expensive. Seniors who opt for in-home care must consider the medical cost in addition to standard at-home living expenses. 

According to Genworth, the cost of hiring a home health aide is $6,292 per month. For seniors that need part time care, the average hourly cost of a home care aid worker ranges from $31 an hour to $34 an hour, depending upon their geographical location. 

The Cost of Community Living

Senior living communities are another great housing option for retirees. These communities offer many benefits including a variety of services, well-appointed amenities, dining, social programming, and appropriate levels of care. 

According to the National Council on Aging, the average cost of an assisted living community is $4,500 per month. However, this price can vary based on many factors including the level of care needed and location. Many people may not know that senior living communities may offer financial assistance programs to help with expenses as well.

One of the most important things to factor in when considering a senior living community is all the benefits, services, and amenities included in the monthly cost. In addition to covering housing, food, and health care, senior living communities also offer “add-ons” that can help seniors enjoy their retirement.

Standard features of senior housing include:

• Housing
• Personalized care when you need it
• Restaurant-style dining 

Some amenities and programs at community living can include:

• Art and music classes
• Cooking classes
• Fitness clubs
• Gardening
• Health and wellness programs
• Pools and spas
• Social and recreational events

Budget For the Care You Need

Making the decision of where to live can be difficult for both seniors and their families. While the choice may come down to a person’s health and finances, other factors like taking care of a home, getting quality health care and remaining active can have an impact when comparing costs. If you’re considering what it would cost to join a senior living community, you can use our financial planning tool to figure out what fits your budget.

If you choose a Senior Lifestyle community, you’ll find yourself surrounded by new friends and plenty of opportunities for engagement. As you explore your new life, we’ll take care of your daily needs, such as cleaning, cooking meals, and maintaining your living area.

Find out more about Senior Lifestyle or schedule a visit today.