Continuing Care Retirement Communities — Business Survival Rate
An estimated 62% of continuing care retirement communities businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 9.1%.
Is Continuing Care Retirement Communities a Good Business to Start?
With a 62% five-year survival rate, continuing care retirement communities 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.
Net negative: more businesses closing than opening (-1.0 pp spread).
Job Creation & Destruction
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 continuing care retirement communities businesses actually make?
See full revenue benchmarks for Continuing Care Retirement Communities →Frequently Asked Questions
- What percentage of continuing care retirement communities businesses fail?
- Approximately 38% of continuing care retirement communities businesses fail within their first 5 years. The annual closure rate is 9.1%, with 1,688 firms closing permanently in 2023.
- Is the continuing care retirement communities industry growing or shrinking?
- The continuing care retirement communities 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.