Assisted Living Facilities for the Elderly — Business Survival Rate

An estimated 62% of assisted living facilities for the elderly businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 9.1%.

62%
5-Year Survival Rate
+3.9%
Net Growth Rate
16,989
Total Firms
1,688
Annual Firm Deaths

Is Assisted Living Facilities for the Elderly a Good Business to Start?

With a 62% five-year survival rate, assisted living facilities for the elderly has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.

The annual exit rate of 9.1% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)8.2%
Exit Rate (closures)9.1%

Net negative: more businesses closing than opening (-1.0 pp spread).

Job Creation & Destruction

14.0%
Job Creation Rate
10.1%
Job Destruction Rate
+3.9%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 992,477 workers across 16,989 firms.

Want to know how much assisted living facilities for the elderly businesses actually make?

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Frequently Asked Questions

What percentage of assisted living facilities for the elderly businesses fail?
Approximately 38% of assisted living facilities for the elderly businesses fail within their first 5 years. The annual closure rate is 9.1%, with 1,688 firms closing permanently in 2023.
Is the assisted living facilities for the elderly industry growing or shrinking?
The assisted living facilities for the elderly industry is currently growing with a net job creation rate of +3.9% per year. New businesses are entering at 8.2% while 9.1% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.