Business & Finance

Rising elder care expenses drive US families toward alternative caregiving strategies

Increased long-term care rates and rising caregiver wages force households to rely on unpaid labor, home modifications, and delayed retirement.

Updated Aug 29, 2026 · 14:23 UTC1 reports

The short version

Soaring long-term care prices are straining U.S. family finances, prompting households to cover substantial out-of-pocket costs, take on unpaid caregiving roles, or alter living arrangements.
Nursing home costs have risen 212% since 1997, while hourly rates for non-medical home caregivers grew from a median of $21 in 2018 to $35 in 2025.
Demand is expanding as the Baby Boomer population ages and younger individuals with disabilities achieve longer lifespans, according to the Urban Institute.
Families face long-term financial uncertainty, with many caregivers reducing personal savings or postponing their own retirement to fund immediate expenses.

Nursing home prices in the United States have increased by 212% since 1997.[Business Insider]
Median hourly costs for non-medical caregivers rose from approximately $21 in 2018 to $35 in 2025.[Business Insider]
Rising operational expenses, higher caregiver wages, increased insurance premiums, care worker shortages following the pandemic, and federal immigration crackdowns have contributed to higher elder care prices.[Business Insider]
According to Howard Gleckman of the Urban Institute, demand for long-term care is growing because the aging Baby Boomer generation and younger people with disabilities are living longer.[Business Insider]
Individual U.S. families report significant out-of-pocket expenses for care, with monthly bills ranging from $6,600 to upwards of $16,000 for home and facility care.[Business Insider]

Some families attribute recent fee spikes at elder care facilities to private equity involvement, though the direct impact across all facilities remains unverified.[Business Insider]