The population of American seniors is expected to double in size within the next twenty-five years, according to a special study entitled 65+ in the United States: 2005, commissioned by the National Institute on Aging (NIA) and conducted by the U.S. Census Bureau,. As our aging population continues to grow, so does the demand for elder care, for both in-home care and residential facilities. At some point we may need to make decisions for ourselves or our loved ones when living at home alone is no longer possible and more care is needed. But can we afford the elder care costs? How much do the options really cost?

Three options for seniors and their families to consider are: in-home care agencies, nursing homes, and assisted living communities. It makes sense to most people that nursing homes, with their more intensive levels of care, cost more than assisted living communities. But many don’t realize that the elder care costs associated with home care can quickly outpace the costs of assisted living as well. Because home care agencies typically charge by the hour, it will depend on how much care is needed, but the expenses can add up quickly for anyone who needs extensive help.

The elder care costs cited below are national averages, and figures do vary by location. In urban areas elder care costs typically exceed those in non-urban areas across America. The average cost for a one-bedroom unit in an urban area assisted living facility is 14.7% more than in non-urban areas and 13% more for an urban area private nursing home room, according to the 2007 Genworth “Cost of Care” Survey.