Artificial intelligence and smart technologies are expanding at warp speed in 2025 to combat labor shortages and enhance care quality. AI-powered virtual assistants, smart wearables, and personalized care plans are increasing efficiency, allowing more direct time with residents.

These tools also boost social engagement through virtual companions and improve security and care coordination. Amid regulatory scrutiny, providers are leveraging AI for better outcomes in senior living and nursing homes.

Trends indicate further growth in home-based tech, enabling aging in place and reducing institutional reliance.

PACE Gaining Momentum as Care Gold Standard

The Program of All-Inclusive Care for the Elderly (PACE) is surging, with 25 new programs in 2024 alone—nearly four times the prior average. This model offers comprehensive, coordinated care for seniors with chronic needs, promoting home-based independence at lower costs than traditional fee-for-service.

Driven by pandemic awareness, for-profit sponsors, and capital access, PACE addresses fragmented care leading to hospitalizations. The age 55+ population is set to grow 6% in five years and 25% by 2049, amplifying its relevance.

PACE's three-way agreements with states and Medicare/Medicaid position it as a scalable solution for complex senior needs.

Nursing Home Demand and Caregiving Surge

By 2030, the US may require over 3,000 new nursing homes to match the silver tsunami, with states like Texas needing 340 facilities and Florida 273. Average facilities must add 20-47 beds in high-growth areas like Arizona and Nevada.

Simultaneously, 63 million family caregivers support those with chronic conditions, facing heightened financial strain and policy gaps. Home care statistics show the 85+ population quadrupling by 2040, pushing states toward more in-home assistance.

Models like GUIDE for dementia care, launching mid-2025, aim to improve quality of life, reduce caregiver burden, and support community living.