Top healthcare trends of 2026: Aging in place is driving innovation in home-based care and technology
Sep 2nd, 2025
With America’s senior population surging and traditional care options dwindling, the push to age in place is transforming healthcare. From AI-driven insights to smart home tech and new care models, innovation is redefining what it means for older adults to live independently, safely, and on their own terms.
For many older adults, the idea of “aging in place”–the ability to live safely, independently, and comfortably in one’s own home and community for as long as possible—has become a significant preference among seniors in the U.S. In fact, studies show that a majority older adults, around 75%, express a strong desire to do just that, indicating how deeply they value the ability to stay connected to familiar surroundings.
This preference is more than just a lifestyle choice, however. It’s reshaping how healthcare is delivered and is fundamentally driving innovation in both home-based care services and the technology designed to support an aging population.
Why aging in place matters now
As healthcare professionals know, the population of older adults is expanding at a pace never seen before.
In 2020, about 56 million Americans (one in six) were age 65 and older. By 2030, projections from the U.S. Census and other organizations estimate that group will swell to about 72 million, or over 20% of the country’s population. By 2050, nearly a quarter of all Americans might be aged 65 and older.
Fig 1. Population growth of adults aged 65 and older in the U.S. from 2000-2050. Population data was collected from multiple sources, including the U.S. Census Bureau, the Urban Institute, S&P Global, and Pew Research Center.
Alongside sheer numbers, the health needs of older adults are becoming more complex. Chronic conditions such as diabetes, heart disease, and dementia are rising sharply. According to the National Council on Aging, about 93% of adults age 65 and older live with at least one chronic condition, and nearly 79% live with two or more. These conditions often require care from multiple specialists and ongoing management, which has traditionally meant frequent doctor visits, hospital stays, or long-term institutional care.
At the same time, the capacity of institutional care is shrinking. Nursing homes and long-term care facilities are grappling with ongoing nationwide labor shortages, inflation, and rising operational costs, while pressures from the government and reimbursements make it challenging to keep pace.
Fig 2. Decline in new skilled nursing facilities opening in the U.S. from 2020-2024. Source: 2024 Access to Care report from the American Health Care Association (AHCA).
As a result, many facilities have been forced to limit admissions, reduce services, or shut down entirely. According to AHCA’s 2024 Access to Care report, 20% of nursing homes have downsized due to labor shortages, and there are nearly 63 thousand fewer nursing home beds available today since 2020. In addition, nursing homes are closing much faster than they are opening, displacing thousands of residents and creating “nursing home deserts” in regions where care has become increasingly scarce.
With the population of older adults growing rapidly, chronic conditions requiring specialized care becoming the norm, and institutional care capacity shrinking, the pressure on the healthcare system is significant. Given this environment, innovations in home health care and technology can be game-changers and bridge the growing gap between the increasing demand for specialized elder care and the limitations of the traditional healthcare infrastructure.
How tech companies are making aging in place a reality
The aging in place movement has given rise to the booming AgeTech market, a sector dedicated to developing tools and technologies that help older adults live independently, safely, and comfortably at home. According to some estimates, AgeTech is one of the fastest-growing areas in healthcare innovation, representing billions of dollars and attracting major investments from startups and established players alike.
Collectively, the innovations below signal a shift in the healthcare landscape: Technology is no longer just an accessory to care, it’s forming the backbone of how aging in place is made possible.
Remote Patient Monitoring (RPM)
A central driver of this market is remote patient monitoring. Wearables, smart watches, and connected devices can track vital signs such as heart rate, blood pressure, and blood glucose levels in real time. This data can be shared instantly with healthcare providers, allowing them to catch early warning signs and adjust care plans without requiring hospital visits.
As a result, older adults who actively use RPM devices report experiencing better health outcomes while reducing the likelihood of being readmitted to a hospital.
Telehealth
Telehealth and virtual care platforms have become indispensable since the pandemic, and they continue to expand access to specialists and primary care providers for homebound patients. For seniors managing multiple chronic conditions, video consultations and digital care coordination mean fewer trips to clinics, which reduces both risk and strain.
Artificial Intelligence
Meanwhile, AI and predictive analytics are helping anticipate problems before they become emergencies. By analyzing patterns from sensors, wearables, and electronic health records, AI can flag subtle changes that may indicate cognitive decline, depression, or early signs of disease progression. This proactive approach shifts care from reactive to preventive.
Smart home technology
Smart home tools and sensors are also transforming day-to-day living. Motion detectors, fall-detection devices, and voice-activated assistants are creating safer home environments. Some systems even learn an individual’s normal routines and send alerts when something seems off, such as a missed meal or unusual nighttime activity.
Robotics
On the frontier of aging in place innovation, robotics and automation are beginning to offer practical assistance and companionship to older adults in need. From automated pill dispensers and cleaning robots to companions like ElliQ that provide social interaction, these machines extend independence and help alleviate some of the burdens caregivers contend with.
How the healthcare industry can better cater to older adults
While technology companies are driving innovation on the product side, home-based care providers are the ones putting these tools into practice and making aging in place a sustainable reality. Across the country, agencies are rethinking their models of care to better meet the needs of a rapidly aging population. Meeting this demand is just about expanding services, however, it may require new business models and coordinated support from organizations across the healthcare landscape to make aging in place more accessible in 2026 and beyond.
Providers
Providers should invest in more comprehensive services and operations that put customers first. That means offering specialized clinical programs tailored to customer needs, including preventive care, symptom monitoring, social and mental health support, while also embracing digital tools. To remain competitive, providers could consider using a plethora of devices, from sensors and monitors to on-demand scheduling platforms and more.
Payors
Meanwhile, payors play a critical role in building sustainability. Traditional fee-for-service payment models often don’t align with the proactive, holistic care that aging in place requires. Instead, insurers are experimenting with value-based arrangements that reward outcomes like reduced hospitalizations, improved chronic disease management, and higher patient satisfaction. Expanding coverage for home modifications, remote monitoring devices, and non-medical services such as transportation or meal support will be essential.
Policymakers
Finally, policymakers can influence the success of aging in place by shaping regulation and funding priorities. Primarily, they can build new frameworks that enable providers and payors to work together more seamlessly, including how information is shared, setting standards, and maintaining quality control. Policies that expand reimbursement for telehealth, support caregiver workforce development, and encourage technology adoption can also remove major barriers.
Learn more
The U.S. and many other countries are facing rapid growth in the 65+ population, alongside rising rates of chronic conditions that require continuous management. Additionally, institutional care systems are stretched thin due to economic and governmental pressures, making it more challenging for older adults to access the care they need to live independently and comfortably where they choose. All this to say that innovations in home health care and technology will be essential not only for the future of the aging in place movement, but also for the broader healthcare ecosystem.
As we look ahead to 2026 and beyond, technology companies and healthcare providers will need to innovate and adapt faster and more efficiently to make aging in place more of a reality. Data and analytics will be key to staying competitive.
Definitive Healthcare offers a clear, robust view of the long-term care and home health industries, including in-depth facility profiles and technology installation data. You can also get access to billions of medical and prescription claims, as well as population and market insights, so you can enhance your strategy with data from across the care continuum. To get hands on with our data, book a demo today.
This blog is part two of our ongoing 2026 healthcare trends series. If you missed our first post, you can read up on how AI and LLMs are impacting healthcare marketing strategies here. In our next blog, we’ll be diving into how pharmacy benefit manager oversight will intensify in 2026!
You might also be interested in...
