In 2025, the median cost of assisted living in the United States is $5,676 per month, or about $68,110 per year, according to Genworth’s Cost of Care Survey. This represents a 10% increase from the previous year, highlighting how inflation continues to drive up senior care expenses. For many families, these rising costs make financial planning for senior care more important than ever.
In this guide, you’ll learn what is the average cost of assisted living. It will help you navigate the average cost of assisted living, explore the key factors that affect pricing, and discover strategies to make senior care more affordable.
What Is the Average Cost of Assisted Living?
The price you’ll pay for assisted living can vary greatly depending on where you live and the services you need. In New Mexico, assisted living costs vary widely depending on the city and level of care required. The statewide average monthly cost is $5,782, translating to $69,384 annually.
However, prices range from city to city. In Albuquerque, the average cost of assisted living is $4,230 per month, which is lower than both the state and national averages.
Additional services or specialized care, such as memory support, may increase your monthly expenses by 20% to 30%. When doing financial planning for seniors in Albuquerque, consider both the base cost and any potential additional services you might need.
Factors That Affect Assisted Living Costs
When you’re planning for assisted living, it’s important to understand what drives the costs. Prices can vary widely depending on personal needs and external factors, so knowing what to expect can help you make better decisions. Let’s explore some of the main elements that influence senior care costs.
Level of Care and Health Needs
The amount of care you or your loved one requires plays a big role in determining assisted living expenses. If only basic help with daily activities like dressing or bathing is needed, costs will be lower. However, specialized care, such as memory care for Alzheimer’s or dementia, can significantly increase the price. Communities often charge higher rates for more intensive medical support or 24-hour supervision.
Apartment Size and Living Space
The size and type of living space you choose also affect how much you’ll pay. A private one-bedroom apartment typically costs more than a studio, while shared accommodations are often the most affordable option. If you’re looking for ways to save, opting for a smaller space or sharing with a roommate can help reduce monthly expenses.
Location and Cost of Living
Where the senior living community is located makes a big difference in pricing. Urban areas usually have higher senior care costs due to increased demand and higher real estate values. On the other hand, rural communities tend to be more affordable. Relocating to an area with lower living expenses can be a smart way to manage long-term care affordability.
Amenities and Services Offered
The amenities available in a community also impact costs. Communities that offer upscale features like gourmet dining or on-site salons often charge higher fees. While these extras can enhance quality of life, it’s important to weigh whether they fit within your budget when paying for assisted living.
How to Pay for Assisted Living
When it comes to paying for assisted living, you have several options to explore. Your personal savings, retirement accounts, and Social Security benefits can be primary sources of funding for your care. If you own a home, selling it or using a reverse mortgage could provide a significant amount of money to cover your expenses. Long-term care insurance is another valuable option if you purchased a policy earlier in life.
Veterans and their spouses might qualify for Aid and Attendance benefits, which can help offset the cost of assisted living. Some life insurance policies offer the option to convert them into long-term care benefits or allow you to withdraw money while you’re still alive. You could also consider asking family members for financial support or exploring bridge loans designed specifically for senior care.
Many assisted living communities offer financial assistance programs or sliding scale fees based on your income and assets. Don’t hesitate to ask about these options when you’re touring different communities. Remember, it’s often possible to combine multiple funding sources to create a comprehensive financial plan for your assisted living expenses.
Strategies to Make Assisted Living More Affordable
You can take several steps to reduce the cost of assisted living without sacrificing quality care. Consider choosing a community in a less expensive area, as prices can vary significantly between cities and even neighborhoods. Moving just a short distance away from major urban centers can often result in substantial savings. If you’re comfortable with the idea, opting for a shared living space or a smaller apartment within the community can also lower your monthly expenses.
Many assisted living communities offer tiered pricing based on the level of care you need. By carefully assessing your requirements and only paying for the services you truly need, you can keep costs down. Some communities may offer move-in incentives or discounts that aren’t advertised, so it’s always worth asking.
Look for communities that allow you to bring your own furniture or personal care items, as this can reduce your overall costs. Additionally, consider communities that offer à la carte services instead of all-inclusive packages, allowing you to pay only for what you use. Remember to regularly review your care plan with the assisted living staff to ensure you’re not paying for unnecessary services as your needs change over time.
Take Power Over Senior Care Costs
As you’ve learned, the average cost of assisted living can vary widely, but understanding your options is crucial for making an informed decision. Exploring what is the average cost of assisted living makes you better equipped to plan financially and find affordable solutions that meet your needs.
Morada Quintessence in Albuquerque stands out as a unique choice, offering a blend of high-quality care and stunning mountain views at a competitive price point. Schedule a tour today and experience the warmth and comfort of this exceptional assisted living community nestled in the heart of New Mexico’s largest city.
