Aging in Place: Budgeting for Renovations vs. Assisted Living

When you've built a life inside four walls, the idea of leaving them can feel unthinkable — and for most older Americans, it is. ​​AARP's 2024 Home and Community Preferences Survey found that 75% of adults 50 and older want to stay in their current homes as they age, and 73% want to stay in their communities.

The cost of making it possible can add up. This WorkMoney guide walks you through what assisted living really costs, what home modifications typically cost, the expenses most people forget to plan for, and the help available.

What Assisted Living Actually Costs

In 2025, the national median cost of assisted living was $6,200 a month, or $74,400 a year — a 5% jump from the year before. That usually covers a private apartment, meals, housekeeping, and some assistance with daily activities, like bathing and dressing.

Where you live also impacts those costs. The median assisted living cost runs closer to $4,400 a month in states like Mississippi and South Dakota, but can top $8,500 to $9,000 a month in New Jersey and Massachusetts. If memory care becomes part of your needs, you can expect to pay another 20% to 30% on top of the base rate. Couples sharing an apartment often pay a second-person fee of around $1,200 a month.

What Renovating to Age in Place Actually Costs

Home renovations tend to fall into three tiers:

• Small safety fixes ($50–$1,000). Grab bars, lever-style door handles, non-slip flooring treatments, brighter lighting, and handheld showerheads cover most of the basics for preventing everyday falls. Many are DIY-friendly or can be completed by a handyman in a few hours.

• Mid-range projects ($1,000–$12,000). Straight stairlifts run $2,500 to $8,000 installed; walk-in showers cost $5,000 to $12,000; entry ramps cost $1,000 to $3,000; and widening a doorway costs $700 to $2,500 per door.

• Larger structural work ($10,000–$50,000+). A fully accessible bathroom remodel starts around $15,000; converting a room to a first-floor bedroom runs $5,000 to $15,000; and installing a home elevator can cost $30,000 to $50,000.

Most homeowners spend around $9,500 on a typical aging-in-place bathroom remodel, which amounts to roughly six weeks of the median assisted living cost. If you end up spending $25,000 on several modifications, you're looking at about four months of assisted living, for changes that could serve you for a decade or more.

It’s important to think about universal design. These are features that work for anyone at any age — wider doorways, curbless showers, lever handles, better lighting. They make your home safer now, easier for your family later, and often hold or increase your resale value.

Other Costs to Plan For

While renovations are one part of your aging-in-place costs, they aren’t the only ones.

• Property taxes. Even when your income doesn’t change, property taxes can keep rising. If you own your home outright, taxes may already be your biggest ongoing housing cost. If that’s been a struggle for you, Ownwell helps homeowners appeal their property tax assessments and only charges if they save you money, which can free up cash for the modifications you actually need.

• Utility bills. Spending more time at home, running medical equipment, or needing steadier heating and cooling can cause your utility bills to climb. Arbor compares what you're currently paying for electricity to alternative rate plans in your local market after you link your utility account or upload a recent bill — a low-effort way to lower a monthly cost that only grows with age.

• Homeowners insurance. Premiums tend to rise after home modifications. Build it into your renovation budget from the start.

• Emergency home repairs. Roofs, water heaters, and HVAC systems can come when you least expect them. Planning for them can make a difference, helping you keep away financial surprises.

• In-home care. Non-medical caregiver services cost around $35 an hour, or about $80,000 a year. If your needs grow beyond what your family can provide, expenses can quickly add up. 

Where to Find Help

Government programs are earned benefits. You or your family paid into them, and they exist to help you stretch every dollar.

Federal home energy rebates funded through the Inflation Reduction Act can offset the cost of efficiency upgrades that make aging in place more comfortable and less expensive. The HOMES program offers up to $8,000 for whole-home efficiency retrofits, and the HEAR program offers up to $14,000 for high-efficiency electric appliances, with the largest rebates going to lower-income households. Rollout varies — some states have programs live, others are still launching — so check with your state energy office before you start a project.

Medicare Advantage supplemental benefits cover home safety modifications, such as grab bars and ramps, depending on the plans. Medicaid Home and Community-Based Services (HCBS) waivers can pay for home modifications and in-home care for those who qualify. The rules and coverage vary by state.

Area Agencies on Aging offer free local guidance on grants and programs where you live. Veterans with a service-connected disability may qualify for VA Specially Adapted Housing (SAH) or Home Improvements and Structural Alterations (HISA) grants.