Retirement Communities in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 62331Revenue
$89.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
1m
Businesses
19,663
Wages
$XX.Xbn
Retirement Communities in the US industry analysis
Broad changes in the country's demographics have driven the growth of retirement communities in recent years as healthcare providers recognize the aging population's need for integrative eldercare. Retirement communities provide essential assisted living services to seniors suffering from chronic illnesses, while independent living facilities grant senior citizens with less medical conditions freedom of choice. The industry has been resistant to economic downturns, but the disproportionate number of COVID-19 deaths at facilities in 2020 resulted in steep declines in occupancy. The industry's nondiscretionary nature makes it difficult for prospective residents to deter care for significant bouts of time. Revenue is expected to climb at a CAGR of 0.4% to $89.1 billion through the end of 2024, with a healthy boost of 4.6% in 2024 alone and profit dipping to 7.3% of revenue. The rising medical needs of the aging population currently characterize trends in the broader healthcare sector. Through the end of 2023, the number of adults aged 65 and older has increased at a CAGR of 3.0%. Since the risk of chronic illnesses, which can restrict independence and mobility, increases with age, the need and demand for senior living and related services has increased.
Trends and Insights
- Advances in nutrition and medical science have increased life expectancy. The growing senior population ready to retire will drive up demand for services from retirement communities.
- Retirement communities offer daily task assistance, health monitoring and sometimes skilled nursing services. The range of these services classifies facilities as either continuing care communities or assisted living facilities.
- Retirement communities are common in warm, senior-dense areas. Florida and California are particularly favored for their ideal climates.
- Consolidation among retirement communities is taking place, though on a small scale. Most providers cater to local populations, but some companies want to broaden their reach.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.4 % over the past five years, to reach an estimated $89.1bn in 2024.
Trends and Insights
The pandemic had lingering impact on revenue and profit
- The elderly population faced an elevated risk of severe COVID-19 infection, necessitating hospitalization and ventilator support. This led to the implementation of strict Centers for Disease Control & Prevention (CDC) protocols, including social distancing, mask-wearing and stringent rules for testing, visitation and communal activities.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Integration of technology will shape retirement communities
- VR and AR technologies are becoming popular tools to engage retirees, providing unique recreational and educational experiences. Fitness trackers and interactive exercise programs tailored for seniors promote physical well-being and social interaction. Gaming platforms designed for older adults can help in cognitive stimulation and mental health. Overall, these technologies contribute to holistic health and community bonding.
Biggest companies in the Retirement Communities in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Brookdale Senior Living Inc. | 2,556.9 | -135.8 | -5.3 | |
Alerislife Inc. | 1,720.2 | 125.6 | 7.3 | |
Sunrise Senior Living Inc. | 1,161.4 | 84.8 | 7.3 |
To view the market share and analysis for all 21 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Continuing care retirement communities, Assisted living facilities and homes for the elderly and Other. Continuing care retirement communities is the largest segment of the Retirement Communities in the US.
Trends and Insights
Stronger performance in continuing care retirement communities
- Continuing care retirement communities (CCRCs) are age-restricted properties that offer independent living, assisted living and skilled nursing services to residents on one campus.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Nursing Care Facilities in the US
- Hospitals in the US
Complementors
- Apartment Rental in the US
- Elderly & Disabled Services in the US
International industries
- Aged Care Residential Services in Australia
- Retirement Villages in Australia
- Aged Care Residential Services in New Zealand
- Retirement Homes in the UK
- Retirement Homes in Germany
Table of Contents
About this industry
Industry definition
This industry provides residential and personal care services for older adults and other individuals who cannot fully care for themselves or want to live in a community facility. The care typically includes room, board, supervision, and assistance in daily living, such as housekeeping services. Some establishments provide skilled nursing care for residents in separate on-site facilities.
What's included in this industry?
Continuing care retirement communitiesAssisted living facilities and homes for the elderlyCompanies
Brookdale Senior Living Inc.Alerislife Inc.Sunrise Senior Living Inc.Purchase this report to view all 21 major companies in this industry.
Related Terms
ACTIVITIES OF DAILY LIVING (ADL)CONTINUING CARE RETIREMENT COMMUNITY (CCRC)HOSPICE CARENURSING HOMECARE FOR ALZHEIMER's DISEASE AND DEMENTIAIndustry Code
NAICS 62331 - Retirement Communities in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Advances in nutrition and medical science have increased life expectancy. The growing senior population ready to retire will drive up demand for services from retirement comm...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Retirement communities offer daily task assistance, health monitoring and sometimes skilled nursing services. The range of these services classifies facilities as either cont...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Retirement communities are common in warm, senior-dense areas. Florida and California are particularly favored for their ideal climates.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Consolidation among retirement communities is taking place, though on a small scale. Most providers cater to local populations, but some companies want to broaden their reach...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Brookdale Senior Living holds the largest market share. Headquartered in Tennessee, they’re considered an incumbent because they display strong market share but lower profit ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Brookdale Senior Living Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Alerislife Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Sunrise Senior Living Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 18 additional companies
Detailed analysis
- Description and key data for Brookdale Senior Living Inc., and factors influencing its performance in the industry
- Description and key data for Alerislife Inc., and factors influencing its performance in the industry
- Description and key data for Sunrise Senior Living Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 18 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The number of adults aged 65 and older in the US has steadily increased. This continued demographic growth will support the rising demand for retirement communities.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Labor shortages in 2020 caused wage costs to surge in retirement communities. Operators must now balance profit margin with maintaining high standards of care, clinical excel...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Retirement Communities in the US industry in United States in 2024?
The market size of the Retirement Communities in the US industry in United States is $89.1bn in 2024.
How many businesses are there in the Retirement Communities in the US industry in 2024?
There are 19,663 businesses in the Retirement Communities in the US industry in United States, which has grown at a CAGR of 1.6 % between 2019 and 2024.
Has the Retirement Communities in the US industry in United States grown or declined over the past 5 years?
The market size of the Retirement Communities in the US industry in United States has been growing at a CAGR of 0.4 % between 2019 and 2024.
What is the forecast growth of the Retirement Communities in the US industry in United States over the next 5 years?
Over the next five years, the Retirement Communities in the US industry in United States is expected to grow.
What are the biggest companies in the Retirement Communities in the US market in United States?
The biggest companies operating in the Retirement Communities market in United States are Brookdale Senior Living Inc., Alerislife Inc. and Sunrise Senior Living Inc.
What does the Retirement Communities in the US in United States include?
Continuing care retirement communities and Assisted living facilities and homes for the elderly are part of the Retirement Communities in the US industry.
Which companies have the highest market share in the Retirement Communities in the US in United States?
The company holding the most market share in United States is Brookdale Senior Living Inc..
How competitive is the Retirement Communities in the US industry in United States?
The level of competition is high and steady in the Retirement Communities in the US industry in United States.
