The cost of caring for older adults in California continues to climb, though signs of stabilization are beginning to emerge after years of sharp post-pandemic increases, according to a new analysis from CareScout.
The study, which compares findings from CareScout’s 2022 and 2025 Cost of Care Surveys, shows California ranks No. 25 nationally for the fastest-rising senior care costs. While that places the state in the middle of the pack, the overall price tag for care remains among the highest in the country, underscoring mounting pressure on families and the broader health care system.
Since 2022, the annual cost of a private room in a California nursing home has surged 20.4% to $182,135. Semi-private rooms rose 15.3% over the same period to $146,000 annually. Other care settings also posted notable increases, with assisted living costs climbing 17.1% to $82,800 per year and adult day health care rising 4.4% to $24,440.
The increases reflect a combination of demographic and economic forces, including California’s rapidly aging population and lingering inflation tied to the COVID-19 pandemic. As more residents enter retirement age, demand for long-term care services is intensifying, placing upward pressure on already elevated costs.
Nationally, the trend is similar. CareScout found that costs have increased in every state since 2022, highlighting a widespread affordability challenge. However, the pace of growth appears to be slowing. In 2025, care costs rose just 1.8% year over year, a significant moderation compared with the 9.2% increase recorded in 2024.
That deceleration may signal a turning point after several years of volatility driven by labor shortages, wage increases and higher operating expenses across the health care sector.
Even with that easing, the cumulative increases since 2022 have created a steep financial hurdle for many families, making it important to plan ahead.
CareScout offered 3 tips to help ease the burden for families.
- Do Not Wait for An Emergency: When an emergency strikes, families shouldn’t have to become expert care coordinators during the worst week of their lives. To mitigate this risk, it is critical to consult with an expert in advance to create personalized care plans to help save money and find the best care.
- Explore Inflation-Protected Long-Term Care Insurance: During an individual's peak earning years, it is advisable to explore long-term care insurance. Paying premiums while money is still coming in, can be advantageous to relying solely on government programs and savings if a prolonged health battle ensues.
- Understand Different Care Options: It is important to understand the different senior care options that are available. For example, nursing homes offer 24/7 medical care, while assisted living facilities do not – but help with bathing, dressing, and medication. Adult day health care and in-home services may offer more flexible or cost-effective alternatives.
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