When families weigh home care against a move to assisted living, cost is usually one of the biggest factors. But comparing the two isn’t as simple as putting an hourly rate next to a monthly fee. To compare home care vs. assisted living costs fairly, you have to look at what each price actually includes.
Quick answer: Home care is billed by the hour, so its cost depends on how many hours of help are needed. Assisted living charges a monthly fee that typically includes housing, meals, and some care, often with added charges as needs increase. For people who need a few hours of help a day, home care is often comparable or less expensive; around-the-clock home care usually costs more.
How Each Option Is Priced
Home Care
You pay for the hours a caregiver is with your loved one. Housing, food, utilities, and home upkeep remain the senior’s normal household costs. Hours can be adjusted up or down as needs change.
Assisted Living
Communities typically charge a monthly base rate for an apartment, meals, housekeeping, activities, and some supervision. Personal care is often priced by level or as add-on services. Many communities also charge an entrance or community fee.
Comparing Home Care vs. Assisted Living Costs Fairly
Step 1: Add Up the Current Cost of Living at Home
Include mortgage or rent, property taxes, insurance, utilities, food, maintenance, and transportation. These continue with home care but are mostly replaced by the assisted living monthly fee. (If the home is paid off, at-home housing costs may be low.)
Step 2: Estimate Home Care Hours
Figure out how many hours of help are truly needed. A few hours a day costs very differently from 24-hour care. Our guide on how many hours of home care your parent needs can help you estimate.
Step 3: Get the Real Assisted Living Price
Ask for the base rate plus the care level your loved one would likely need, and any extra fees for medication management, incontinence care, or memory care. Ask how often rates and care levels increase.
Step 4: Compare Total Monthly Costs
Compare (home costs + home care) against (assisted living base rate + care fees + personal expenses).
Hidden Costs to Watch For
With home care: home modifications like grab bars or ramps, higher utility costs, and medical alert devices.
With assisted living: community fees, care level increases, medication management fees, memory care premiums, moving costs, and charges for extras like transportation or salon services.
When Each Option Tends to Cost Less
Home care often costs less when:
- Your loved one needs a few hours of help a day, not constant supervision
- Family provides part of the care
- The home is paid off or housing costs are low
Assisted living may cost less when:
- Your loved one needs supervision for much of the day and night
- The home is expensive to maintain
- Social isolation at home is a major concern and family can’t visit often
Cost Isn’t the Only Factor
Quality of life matters too. Many people strongly prefer staying in familiar surroundings, especially those living with dementia. Others thrive with the built-in social life of a community. Our comparison of in-home care vs. assisted living covers the non-financial trade-offs.
Paying for Either Option
Long-term care insurance, veterans’ benefits, and Medicaid programs may help pay for home care, assisted living, or both, depending on eligibility and state rules. Original Medicare generally doesn’t cover either for ongoing custodial care. See how to pay for home care.
Frequently Asked Questions
Is home care cheaper than assisted living?
It depends on how many hours of care are needed. For part-time help, home care is often comparable or less expensive. For 24-hour care, assisted living is usually less expensive.
Can someone use home care in assisted living?
Yes. Some families add private home care in assisted living for extra one-on-one attention.
How Briggs Home Care Can Help
During a free consultation, your local Briggs Home Care team can share pricing for the schedule your loved one needs, so you can compare options with real numbers. Explore our services, find a location near you, or call 1-833-960-CARE (2273).
This article is general information, not financial advice.
Related Reading
- Start here: How to Pay for Home Care: A Complete Guide to Your Options
- Can Family Members Get Paid to Be Caregivers?
- Splitting the Cost of a Parent’s Care Among Siblings
Trusted outside resource: Medicare.gov
