III. Industry Analysis
The Assisted Living Facilities industry is expected to grow robustly over the next five years.
The elderly population is expected to continue growing as more of the baby boomer generation reaches retirement age. Thus, the number of adults aged 65 and older is expected to grow at an annualized rate of 3.0%, further supporting demand for industry services. As a result, industry revenue is forecast to rise at an annualized rate of 3.8% to $40 billion during the same period.
As demand rises over the next five years, growth in the number of industry facilities is expected to outpace the number of companies. This slight increase in concentration would enable large companies to avoid labor redundancies. As a result, the value of industry wages are expected to continue rising over the next five years, while wage costs are expected to decrease as a share of revenue. This, in turn, will likely lead to rising profit over the next five years.