Top Assisted Living Markets to Watch in 2025

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Welcome to my list of the Top Assisted Living Markets to Watch in 2025. This is an annual review I do to help determine which states are the best for assisted living - I analyze trends, data, and real numbers so you don’t have to. Below, I’ll walk you through how I chose these markets, which states are leading the way, and how you can use this info to find the best place to launch or expand your assisted living business.

Check out this video, too: 

How I Picked the Top Markets (Easy Steps)

I use three key factors to rank a state:

  1. Retirement trends — Where are seniors moving when they retire?

  2. Degree of difficulty — How hard is it to get licensed and operate a home there?

  3. Competition — How many existing facilities and licensed beds are already in the area?

I reviewed dozens of sources to check migration patterns, population shifts, and senior demand. I also studied licensing rules like staff-to-resident ratios, inspection requirements, and how long it typically takes to get your license approved. I call this the “degree of difficulty.” Finally, I looked at the total number of licensed beds and existing facilities to see how saturated each market is.

I always start broad and then narrow down. Meaning, look at states first, then zoom into cities, then neighborhoods. This approach keeps you focused and helps you see the full picture before committing.


What to Check After You Pick a State (Market Details)

Once you choose a state, it’s time to dig deeper into local data. These details will help you choose the right city — and even the right neighborhood — for your facility:

  • Median age and age bands — The higher the population of people 65+ and especially 80+, the greater the need for assisted living.

  • Income levels — Higher average incomes support private-pay rates. Lower incomes mean you should explore Medicaid and state-funded programs.

  • Crime rate — Families prioritize safety. Look for areas with low crime and compare nearby zip codes for differences.

  • Political leanings — Not the main factor, but still helpful. Some states lean business-friendly with fewer regulations, while others invest more in public programs and Medicaid.

These simple checks give you a clear picture of what demand looks like, how much you can charge, and how your facility will fit into the local landscape.


My 2025 Top 10 States to Watch (Quick List)

I ranked states based on the three major criteria above. Here are the top 10 that stood out for 2025:

  1. Wyoming

  2. West Virginia

  3. Kentucky

  4. North Dakota

  5. Delaware

  6. Oklahoma

  7. Georgia

  8. Mississippi

  9. Tennessee

  10. Indiana

These states are spread across different regions of the U.S., which means there’s no single “best” region for assisted living. Each offers its own unique opportunities. You can absolutely succeed in any market if you do thorough research and plan your approach carefully.

And if your state isn’t on the list — don’t worry. At this point - I truly believe there are no "bad" places for assisted living. You can still thrive even in more competitive or heavily regulated states. It might take a little more work, but the results can be just as rewarding.


How to Use This Market List (Practical Next Steps)

Here’s how to take action with this data:

  1. Pick a state from the top list or choose your home state if you want to stay local.

  2. Do city-level checks — Review median age, income levels, and crime stats. Tools like U.S. Census data or city-data.com are great starting points.

  3. Check competition — Look up how many licensed facilities and beds already exist in your target city or county.

  4. Review degree of difficulty — Study state licensing timelines, caregiver requirements, and other rules.

  5. Make a shortlist of 2–3 cities and then narrow it down to specific neighborhoods for your facility.

If you want faster results, target places with strong retiree migration, lower competition, and simpler licensing. If you’re playing the long game, focus on areas with steady demand and build your plan around that.


Quick Win Tips (From the Research)

  • Take your time with market research — this step is often the difference between success and costly mistakes.

  • Don’t overlook zoning, permitting, or land-use rules. Skipping these early steps can delay your launch.

  • Decide on private-pay vs. Medicaid before you invest. Your business model will shape your market choice.

  • Use your data in grant applications and funding proposals. Demonstrating unmet demand with hard numbers builds credibility and increases your chances of approval.


 Next Steps

âś… Download the free Business Plan Checklist to start building your foundation.

âś… Need hands-on help? Apply to join the Assisted Living Investing Mastermind for expert coaching.

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