HARRISBURG, PA — The cost of home care and assisted living has risen nearly 50 percent nationwide since 2019, outpacing income growth for older adults and making long-term care increasingly unaffordable, according to a new report released by AARP on March 18.
In Pennsylvania, the average annual income for residents age 65 and older was $55,938 in 2025, while the cost of care exceeded that amount across most services, AARP reported.
Annual median costs in Pennsylvania include $155,490 for a private nursing home room, $141,985 for a semi-private room, $73,206 for assisted living, and $53,040 for a home health aide.
The report found that long-term care costs have grown significantly faster than incomes, with home care expenses increasing by nearly 50 percent between 2019 and 2024, while median household income for those 65 and older rose by less than half that rate.
AARP said typical incomes are often insufficient to cover care needs, noting that the national median household income for adults age 65 and older was about $60,000 in 2024, compared with home care costs exceeding $50,000 annually.
The report also found that savings are limited, with households age 75 and older holding a median of about $50,000 in financial assets, enough to cover roughly one year of home care or only a few months in a nursing home.
“Home care and other long-term care services have quickly become increasingly unaffordable in recent years,” said Bill Johnston-Walsh, AARP Pennsylvania state director. “As costs rise faster than older adults’ household incomes, many families must deplete savings, rely on unpaid family caregivers, or go without needed care.”
AARP said the rising costs threaten the financial security of older adults and increase reliance on family caregiving as affordability declines.
The full report is available at https://www.aarp.org/pri/topics/ltss/ltss-becoming-even-more-unaffordable/, with additional state-level data at https://www.aarp.org/pri/topics/ltss/affordability-of-private-pay-long-term-services-and-supports/.
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