With 56 million seniors in the US and most homes unfit for aging, demand for essential home modifications is rising—creating investment opportunity.
As of 2020, approximately 56 million Americans were aged 65 or older, up from 40 million in 2010, according to the US Census. Historically, seniors preferred to remain in their homes as they age, a trend reinforced by the COVID-19 pandemic, which heightened concerns about nursing home safety following widespread outbreaks. A University of Michigan poll found that 88% of adults aged 50–80 consider it important to stay in their homes for as long as possible.
Rising demand
Despite the strong preference for aging in place, most homes are not designed to support this transition. The Delaware Journal of Public Health estimates that only 10% of homes in the US are ‘aging-ready’, highlighting a significant need for home modifications. Essential adjustments, such as walk-in bathtubs, stairlifts, ramps, and non-slip flooring, are becoming increasingly necessary as mobility declines. Spending on these modifications is expected to shift from discretionary to essential as the senior population grows.
Beyond home modifications, a range of products and services will be required to support aging in place. Assistive technologies such as emergency medical alert systems, specialized furniture, and in-home healthcare and support services will play a critical role in enabling seniors to live safely and independently.
Key market drivers are robust
Multiple long-term trends underpin the growth of the aging in place market. The Administration for Community Living projects that by 2060, the number of seniors will reach 89 million. This demographic shift is further supported by strong consumer spending power: baby boomers hold over half of the total wealth in the US. Their financial resources, combined with the widespread desire for independence, are expected to drive significant investment in their homes and related services. Additionally, the expansion of home healthcare services—currently supporting around 15 million Americans—further enables seniors to remain in their homes for longer.
Attractive investment opportunities
In many areas the aging in place market remains highly fragmented, with many providers specializing in single solutions or serving regional markets. This presents opportunities for investors to consolidate, professionalize, and scale businesses. Higher potential businesses that are more attractive for investment typically:
- Target higher growth segments and geographies
- Develop an effective sales and marketing engine to reach their unique target audience of seniors
- Build scalable operating models by standardizing services and processes to enable growth, drive productivity, and enhance margins
- Leverage key channels such as medical professionals, interior designers, and other trusted advisors who influence senior purchasing decisions
For more insight into the aging in place market or to discuss strategic investment opportunities, get in touch.
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