The U.S. healthcare system is undergoing a fundamental shift as the home becomes an increasingly important setting for senior care. Driven by demographic trends, patient preferences, technological innovation, and supportive policy changes, home-based care is emerging as one of healthcare's most significant growth opportunities.
Consumer preference is a major factor behind this transition. AARP data reveals that 75% of people aged 50 and older prefer to age in place, with this preference becoming even stronger among those over 65 and those living in rural areas. An MIT AgeLab study similarly found that nearly 90% of seniors plan to remain in their homes as they age, even if their healthcare needs increase. Additionally, home-based care can cost up to 90% less than comparable care in skilled nursing facilities.
At the same time, demographic trends are increasing the demand for senior care services. Approximately 11,000 Americans turn 65 each day, and all 73 million baby boomers will reach age 65 by 2030. Reflecting this growing need, home health spending is projected to rise from $174 billion in 2025 to $320 billion by 2033.
Technology is increasingly enabling the delivery of high-quality at-home care. Remote patient monitoring (RPM) has evolved from basic vital tracking to sophisticated AI-enabled systems, offering continuous care and early detection of health issues. Studies show that RPM can improve patient outcomes, reduce hospital visits, and lower healthcare costs, especially in rural and underserved areas. Similarly, AI companions, ambient monitoring systems, and drone delivery networks are no longer concepts of the future; they are becoming practical solutions today.
Policy changes are further propelling this shift toward home-based care. The CMS ACCESS Model, which launched this past July, incentivizes technology-driven, home-based chronic disease management. Additionally, the hospital-at-home waiver, extended through 2030, gives health systems the confidence to invest in home-care infrastructure. Programs like PACE (Program of All-Inclusive Care for the Elderly) further highlight the effectiveness of aging-in-place initiatives, with enrollment growing rapidly and most participants remaining in their homes.
The convergence of demographic demand, patient preference, technological innovation, and supportive policy is transforming home-based care from a niche offering into a core component of healthcare systems. Organizations that develop scalable, tech-enabled care models focused on the home are not only addressing current needs but also positioning themselves for long-term success.
For more information on related investment opportunities and insights, read Healthcare Mosaic – Shifting Sites of Care: Evolving Industry Trends Signal Major Shift in Points of Care Delivery, published on April 22, 2026, by Ryan Daniels, CFA, partner, and group head of the healthcare technology and services sector.