Rising aged care room prices in 2025

By Tyler Fisher, Data Scientist

Our latest industry analysis shows a clear upward trend in aged care accommodation prices across 2025. From December 2024 to December 2025, advertised room prices increased by 12 per cent over the year, with over 2,200 homes raising their highest advertised prices and more than 2,400 homes increasing their lowest prices.

Price trends through 2025

Our analysis highlights both steady growth and notable variability in pricing:

• Average industry price: $527,000 in December 2024, steadily rising to $587,990 in November 2025 and peaking at $588,575 in December 2025.
• Highest advertised price: Started close to $590,000 in January 2025, fell below $530,000 by March, spiked to near $570,000 in June, and dropped to just over $510,000 by September. By December, the highest advertised price reached its lowest point for the year: around $509,000.

This fluctuation reflects how most providers review and update pricing only once per year and that many had already implemented their changes earlier in 2025.

The past decade saw a significant gap expand between the cost of accommodation and the resident contribution. Accommodation costs continue to rise as asset depreciation costs soar along with the provision of hotel services, which are continuing to become more lavish. Providers need to recover these growing costs by asking consumers to contribute more. And consumers are prepared to pay for what they want.

Why this matters for providers

1. Consumer demand continues to support higher pricing
   Rising costs of accommodation and premium hotel-style services mean that residents are increasingly willing to pay for quality and comfort, particularly in high-demand areas.
2. Strategic timing of pricing changes is key
   Most providers implement updates once a year. Early adjustments, combined with careful monitoring of consumer sentiment, help manage occupancy and revenue.
3. Price variability highlights market nuance
   While average prices steadily increased, highest advertised prices fluctuated significantly throughout the year. This indicates providers are experimenting with price positioning in response to both market conditions and operational costs.
4. Ongoing trend expected
   Room prices are likely to continue rising, as providers adapt to new service delivery models and cost recovery structures. Monitoring these trends allows providers to make data-informed pricing decisions that balance sustainability with resident satisfaction.

2025 has underscored a period of strategic recalibration in aged care accommodation pricing. Providers are navigating the twin pressures of rising operational costs and consumer expectations for premium services.

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Given the level of interest from the media and the industry, we will continue our free Accommodation Pricing Report offer until end of March 2026.