The current national median cost of full-time home care is $6,478 per month, compared with $9,581 for a semi-private room in a nursing home. While home care can include nonmedical and/or medical services, nursing homes provide the highest level of medical care available outside of a hospital. Along with cost, other factors such as a senior’s need for social engagement and their preferred living environment must also be considered when choosing between home care and a nursing home.
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In-home care costs about $34 per hour or $6,478 per month for 44 hours of care per week, according to A Place for Mom’s 2026 Costs of Long-Term Care and Senior Living Report.[01] With this care schedule, home care is less expensive than a nursing home, which costs about $9,581 per month for a semi-private room or $10,798 for a private room.[02] Other costs of professional home care can include fees for transporting your loved one to appointments and paying for overtime care if needed.
Home care is usually less expensive than a nursing home when fewer than 40 to 50 hours of care are needed per week. If your loved one needs 60 hours of care per week or more, home care can cost significantly more than a nursing home.[01]
Signs it may be time for a nursing home include a need for rehabilitation following a stroke or surgery and a need for constant monitoring and medical care, such as during the later stages of Parkinson’s disease or dementia. Still another sign is when a loved one’s primary caregiver is experiencing their own health challenges or caregiver burnout.
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The main cost difference between home care and a nursing home is the level of medical help and monitoring provided, with nursing homes providing a higher level of care. Another significant cost difference between the two is that nursing home fees include residence in a private or semi-private room. Among other differences between home care and nursing homes, nursing homes provide constant medical observation, daily physical therapies, and help with activities of daily living (ADLs).
The two most important factors that affect the cost of home care are the:
Nursing home costs can be seen as all-inclusive because the monthly rate covers room and board, assistance with ADLs, and medical care. Nursing home prices are determined primarily by location and the type of room a resident chooses.
| Service/feature | Home care | Nursing home |
|---|---|---|
| Housing | Mortgage or rent paid separately | Private or semi-private room included |
| Meals | Groceries and meal prep handled separately | Meals included |
| 24/7 supervision | Requires multiple shifts of caregivers paid hourly | Included in monthly rate |
| Skilled nursing care | Only included in home health care services | Licensed nursing staff available on site |
| Medication management | Reminders included in nonmedical home care; further assistance may require skilled visits | Included as part of care plan |
| Utilities and home upkeep | Utilities, maintenance, and repairs paid separately | Included in monthly rate |
| Care coordination | Family often manages scheduling and oversight | Managed by facility staff |
Beyond hourly rates for professional home care, supporting a loved one who wants to age in place can come with added costs that aren’t always easy to calculate. For example, family caregivers may:
Over time, the financial, physical, and emotional demands of caregiving can lead to burnout, which may require respite care or additional support, further increasing overall costs.
Beyond cost, our guide can help you compare care options for a parent who needs around-the-clock support and understand how continuous care can be arranged.
Families typically pay for home care with a combination of Social Security benefits, pensions, savings, veterans benefits, and contributions from family members. Medicaid is the most common payment method for long-term nursing home care, while most seniors use Medicare to pay for short-term rehabilitation in a nursing home following a qualifying hospital stay.
Yes, you or your loved one may be able to deduct the cost of home care and the cost of nursing home expenses on a federal tax return if these expenses meet certain requirements.
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Deciding which level of care is right for your loved one involves considering both their medical and their emotional needs. A nursing home provides the highest level of medical care, with 24-hour monitoring and medical equipment, making it an appropriate choice for seniors with severe ongoing medical or cognitive health conditions. Nursing homes are safe environments that also offer therapies, such as physical therapy, and opportunities for seniors to socialize with others.
If your loved one is still somewhat independent and needs care occasionally or on a regular schedule, then home care may be a better choice. Of course, 24/7 home care and live-in home care are also available if needed.
Understanding the cost differences between home care and nursing homes, and what each choice can provide for your loved one, will help you determine which type of long-term care is best.
While A Place for Mom doesn’t refer to nursing homes, our Senior Living Advisors can help you and your family explore other senior care options in your area. Many of the assisted living communities we partner with offer on-site access to various skilled nursing care services. Our advisors can also provide information about local home care providers based on your loved one’s unique needs and budget, all at no cost to you.
Medicare covers short-term nursing home stays and home health care services, but only if certain criteria are met. Medicaid in all states covers nursing home care and home health care for seniors who meet certain medical and financial requirements. However, Medicaid coverage of nonmedical home care varies by state.
Not necessarily — home care costs about $34 per hour per provider. If a senior needs 60 hours of care per week or more, it’s likely that more than one home care aide will be needed, making home care significantly more costly than a nursing home.
Questions to ask include:
A Place for Mom. (2026). A Place for Mom proprietary data.
CareScout. (2026). Cost of Care Survey.
The information contained on this page is for informational purposes only and is not intended to constitute medical, legal or financial advice or create a professional relationship between A Place for Mom and the reader. Always seek the advice of your health care provider, attorney or financial advisor with respect to any particular matter, and do not act or refrain from acting on the basis of anything you have read on this site. Links to third-party websites are only for the convenience of the reader; A Place for Mom does not endorse the contents of the third-party sites.