After several years of steep increases, the cost of long-term care showed signs of stabilization in 2025 — though prices remain historically high.
New data released by CareScout, a subsidiary of Genworth Financial, found that nursing home costs rose modestly compared to the larger increases reported in recent years. Most long-term care settings experienced annual price growth between 1% and 5%, suggesting the market may be returning to more typical inflation patterns.
For nursing homes, the national median daily rate for a semi-private room was reported at about $315, bringing the estimated annual cost to roughly $114,975. Private rooms reached a median of about $355 per day, or roughly $130,000 per year.
CareScout CEO Samir Shah said the relatively small increases reflect a shift away from the sharp volatility that followed the COVID-19 pandemic.
“From our perspective, what stood out in the nursing home data was how modest the increases were compared to the volatility we saw in prior years,” Shah said, according to industry reports.
Pandemic-era pressures begin to ease
During the height of the pandemic, nursing homes faced severe staffing shortages and rapidly rising labor costs. Facilities were forced to compete aggressively for workers, driving wage increases that contributed to higher care costs.
Those pressures have started to ease, Shah said, with pricing now moving more in line with broader inflation.
“Higher-acuity settings like nursing homes experienced significant wage pressure and operational disruptions during the pandemic and recovery years,” Shah said. “The latest data suggests those market distortions are beginning to normalize.”
Still, even modest increases can place a heavy burden on families given the already elevated cost of care.
“Moderation does not mean affordability,” Shah added, emphasizing the importance of early financial planning for long-term care.
Other care settings show mixed trends
The annual Cost of Care Survey — conducted since 2004 — collected thousands of provider price points nationwide during 2025.
Among other care settings, adult day health services were the only category to decline, dropping 5% to a median of $95 per day, or about $24,700 annually.
Assisted living costs increased 5% to approximately $74,400 per year, reflecting broader housing market trends that influence room and board pricing.
Meanwhile, the median hourly rate for in-home caregivers rose 3% to $35 per hour, equal to about $80,080 annually based on 44 hours of care per week.
CareScout also introduced a new category this year: skilled nursing services delivered in the home. Those services averaged about $90 per hour, or roughly $160 per visit depending on the type and duration of care required, according to the report.
Where nursing home care costs the most
According to the survey, Alaska ranked as the most expensive state for semi-private nursing home rooms, followed by Oregon, New York, Hawaii and Connecticut.
On the opposite end, Texas, Missouri, Oklahoma, Arkansas and Louisiana were among the least expensive states for semi-private rooms.
CareScout’s findings reflect median costs across metropolitan areas nationwide, though actual prices vary widely depending on a patient’s care needs and local market conditions.
