United States Assisted Living Facility & Neurorehabilitation Market By Service Provider (Public, Private), By Region, Competition, Forecast and Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 16.96 Billion
CAGR (2026-2031)	6.63%
Fastest Growing Segment	Public
Largest Market	West
Market Size (2031)	USD 24.93 Billion

Market Overview

The United States Assisted Living Facility & Neurorehabilitation Market will grow from USD 16.96 Billion in 2025 to USD 24.93 Billion by 2031 at a 6.63% CAGR. The United States Assisted Living Facility and Neurorehabilitation Market comprises residential institutions that provide integrated housing, personal care, and specialized therapeutic services for individuals managing neurological disorders such as stroke, traumatic brain injury, or degenerative diseases. The primary drivers propelling this market include a rapidly aging demographic susceptible to neurological events and the growing preference for post-acute care settings that offer a continuum of rehabilitation outside traditional hospital environments. These factors collectively ensure a sustained demand for facilities capable of delivering long-term, high-quality restorative care.

Market performance indicators reflect this upward trajectory in demand and utilization. According to the National Investment Center for Seniors Housing & Care, in 2025, the occupancy rate for senior housing properties in primary markets increased to 87.4%. Despite these positive demand metrics, the sector faces a substantial challenge in the form of widespread workforce shortages. The persistent scarcity of qualified nurses and specialized neuro-therapists restricts operational capacity and creates a bottleneck that may impede the industry's ability to fully capitalize on the expanding patient base.

Key Market Drivers

The rising prevalence of neurological disorders and traumatic brain injuries serves as a primary catalyst for the United States Assisted Living Facility and Neurorehabilitation Market. As the incidence of these conditions escalates, the necessity for residential facilities offering integrated therapeutic neuro-care shifts from an optional service to a critical healthcare requirement. According to the Brain Injury Association of America, March 2025, in the '2025 Public Perceptions of Brain Injury Report', nearly 40% of U.S. adults reported experiencing symptoms of a brain injury, a figure significantly higher than previous estimates. This expanding patient pool forces operators to reconfigure standard assisted living models into high-acuity rehabilitation centers, ensuring that residents receive continuous, restorative support that traditional generalist settings cannot effectively provide.

Simultaneously, the increasing demand for specialized post-acute and memory care services is actively reshaping operational priorities and driving higher utilization rates. Patients and payers are bypassing generic nursing homes in favor of facilities that deliver targeted neuro-recovery programs, resulting in a robust uptake of services for operators capable of managing complex needs. According to Encompass Health Corporation, February 2025, in the 'Fourth Quarter 2024 Earnings Release', the company achieved a 7.8% year-over-year growth in discharges, reflecting the acute market need for specialized restorative care. Broadening the market perspective, this demand surge is tightening overall inventory; according to Multihousing News, January 2025, absorption in the senior housing sector increased by 5% in the fourth quarter of 2024 compared to the previous quarter, indicating a sustained upward trajectory in occupancy driven by need-based care.

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Key Market Challenges

The widespread shortage of qualified nurses and specialized neuro-therapists functions as a critical bottleneck, directly impeding the growth of the United States Assisted Living Facility and Neurorehabilitation Market. While demographic trends indicate a robust surge in potential residents, facilities are operationally constrained by their ability to maintain safe staff-to-patient ratios. Without sufficient clinical personnel, providers are often compelled to cap admissions or leave available beds empty, limiting their capacity to convert high market demand into actual service delivery and revenue generation. This inability to fully staff facilities creates a disconnect where physical infrastructure remains underutilized despite a willing patient base.

This labor deficit presents a long-term structural impediment to the sector's expansion capability. According to the National Investment Center for Seniors Housing & Care, in 2025, the industry faced a requirement of approximately 660,000 additional workers by 2033 to meet projected care demands. This substantial gap between workforce supply and the growing needs of the aging population restricts the industry's ability to scale operations effectively. As a result, the market cannot fully leverage the rising occupancy potential, as the scarcity of specialized staff forces a contraction in service availability and hinders the establishment of new care units.

Key Market Trends

The integration of advanced telehealth and remote rehabilitation technologies is fundamentally altering service delivery within the United States Assisted Living Facility and Neurorehabilitation Market. Facilities are moving beyond traditional on-site therapy models to adopt digital platforms that connect residents with remote specialists, ensuring continuity of care for complex neurological conditions without the logistical burden of external transport. This technological evolution allows operators to offer high-acuity monitoring and virtual neuro-recovery sessions directly in resident suites, effectively bridging the gap between acute hospital interventions and home-based recovery. According to Claris Healthcare, January 2025, in the 'Why Remote Patient Monitoring is Transforming Senior Care' article, this technological shift has resulted in a 71% increase in Remote Patient Monitoring (RPM) adoption among healthcare facilities, underscoring the rapid industry pivot towards tech-enabled restorative care.

Simultaneously, the market is experiencing a distinct rise in upscale and luxury assisted living environments, driven by a consumer shift away from institutional medical settings towards hospitality-oriented living spaces. Operators are restructuring their physical assets to accommodate affluent residents who demand expansive private accommodations and premium amenities while receiving rehabilitation services. This trend prioritizes lifestyle and comfort as core components of the therapeutic environment, challenging the conventional density-focused facility layout. According to Senior Housing News, August 2025, in the 'Occupancy Data Shows Some Senior Living Residents Now Prefer Larger Units' article, assisted living units with three or more bedrooms carried an average occupancy of 88%, significantly highlighting the growing resident preference for spacious, premium accommodations over traditional studio layouts.

Segmental Insights

The Public segment currently stands as the fastest-growing category in the United States Assisted Living Facility & Neurorehabilitation Market. This rapid expansion is primarily fueled by increased government funding and policy initiatives designed to improve care accessibility for the rising geriatric population. Public providers utilize these resources to modernize facilities and adopt advanced rehabilitation technologies while maintaining cost-effectiveness compared to private counterparts. Additionally, support from the Centers for Medicare & Medicaid Services (CMS) through favorable reimbursement frameworks and new care models further accelerates this segment’s development, positioning it as a critical pillar in addressing national long-term care needs.

Regional Insights

Based on information from trusted market analysis, the West US holds the dominant position in the United States Assisted Living Facility & Neurorehabilitation Market. This leadership is primarily driven by favorable demographic trends, as data from the U.S. Census Bureau indicates a rapidly expanding geriatric population in the region due to retirees relocating for warmer climates and lifestyle preferences. Consequently, this influx has necessitated a dense concentration of assisted living communities and specialized neurorehabilitation centers, particularly in states like California. Furthermore, the region leverages significant healthcare expenditure and the integration of advanced medical technologies, ensuring its continued prominence in the sector.

Recent Developments

• In April 2025, Myomo launched the MyoPro 2x, the next generation of its wearable medical robotics product line for individuals with upper-limb paralysis. This new myoelectric orthosis featured significant design improvements, including a more intuitive donning process that enabled users to put on the device independently. The development of the MyoPro 2x was driven by extensive feedback from clinicians and patients, aiming to enhance the user experience and clinical outcomes for those suffering from neuromuscular conditions such as stroke or nerve injury. The launch underscored the company's continued focus on technological innovation within the neurorehabilitation sector.
• In September 2024, Brookdale Senior Living entered into definitive agreements to acquire a portfolio of 41 senior living communities for approximately $610 million. These properties, which the company previously operated under triple-net lease structures, included communities purchased from a joint venture led by Welltower and others from Diversified Healthcare Trust. This strategic move allowed the company to gain greater flexibility in portfolio management and ownership, thereby enhancing its long-term value creation. The acquired assets comprised independent living, assisted living, and memory care units, reinforcing the company's substantial footprint in the United States assisted living market.
• In June 2024, Lifeward introduced the NEO and NEO+ systems as the latest additions to its AlterG anti-gravity product line. These new devices utilize Differential Air Pressure technology to facilitate physical and neurological rehabilitation by reducing the effective body weight of patients during therapy sessions. The launch was designed to make this advanced rehabilitation technology more accessible to a broader range of clinics and athletic training facilities across the United States. This product expansion reflected the company's commitment to enhancing recovery outcomes for individuals with physical limitations through innovative wearable and mobility solutions.
• In April 2024, Select Medical announced a strategic joint venture with UF Health Jacksonville to establish a new inpatient rehabilitation hospital in Florida. The collaboration was formed to address the rising demand for specialized rehabilitative care for patients recovering from strokes, traumatic brain injuries, and other debilitating neurological conditions. The new 48-bed facility, branded as UF Health Rehabilitation Hospital — North, was planned to be located within the UF Health North campus. Select Medical agreed to manage the hospital, leveraging its operational expertise to provide a full continuum of care for patient recovery and community reintegration.

Key Market Players

• Centre For Neuro Skills
• Mary Lee Foundation
• NeuroRestorative Associates, Inc.
• Mentor - Networks, Inc.
• Pate Rehabilitation Endeavors, Inc.
• Res-Care, Inc

By Service Provider	By Region
Public Private	Northeast Midwest South West

Report Scope:

In this report, the United States Assisted Living Facility & Neurorehabilitation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Assisted Living Facility & Neurorehabilitation Market, By Service Provider:

• Public
• Private

• United States Assisted Living Facility & Neurorehabilitation Market, By Region:

• Northeast
• Midwest
• South
• West