Non-Medical In-Home Care Trends in 2026
Home health care is a bit of a misnomer. While many caregiver interactions involve medical interventions like managing medications and monitoring vitals, there are plenty of other ways they provide non-medical care at home. From assistance with household tasks to social support and companionship, it’s a very broad and diverse spectrum.
As the United States population ages, demand for these services will only continue to increase. But at the same time, the home care industry has been feeling the pressure of staffing shortages and turnover for years. Nearly 80% of newly hired caregivers quit their roles within just 100 days on the job, keeping agencies on a hamster wheel of hiring, training, and starting over again.
Caregiver retention and recruitment are therefore at the forefront of home care leaders’ minds. Meanwhile, AI offers a beacon of hope to fill certain gaps when recruitment is tight, while optimizing staff members’ workloads through automation. Here are the trends to watch in the non-medical home care industry in 2026 and beyond.
Growing Demand for Non-Medical Care
The need for in-home care of all kinds is on the rise, with no sign of slowing down. There are a number of factors driving this spike in demand, including an aging population nationwide. According to the US Census Bureau, the number of Americans aged 65 and up is projected to increase from 58 million in 2022 to 82 million by 2050. That’s equivalent to a 47% jump.
At the same time, more and more older adults are choosing to age in place. For most of us, home is a comforting and peaceful place – that doesn’t simply change as we age. Non-medical care gives individuals the support they need to age gracefully at home, preserving a sense of independence and autonomy.
How AI Is Shaping In-Home Care
Like most industries, technology and particularly AI are playing an increasingly central role in supporting home care aides and agencies. New advancements in health tech will completely transform how we administer care in the not-so-distant future, with its effects already being felt industry-wide.
Agencies are most optimistic about AI’s potential to ease the burden of scheduling, with 64% viewing shift matching and auto-scheduling as its greatest impact. Scheduling also features in AI’s second-most promising application – specifically, factoring caregivers’ preferred hours into the shift assignment process.
Without the use of technology, pairing the right caregiver to each client while accounting for last-minute call-outs and unexpected changes is a herculean task. Schedulers have to juggle manual follow-ups and plenty of documentation to ensure everyone arrives on time and in the correct location, all while filling shifts that have unexpectedly come online.
AI can jockey these tasks with ease, instantly assigning available caregivers to open appointments based on specialized skills and client preferences. It’s also an unbiased actor, focusing on the best possible match and finding alignment with preferred hours instead of prioritizing based on familiarity or tenure.
How AI Will Transform Non-Medical Home Care
While AI is poised to usher in major systemic changes, it will primarily enhance systems agencies already use for caregiver management, not replace them outright. Functions like scheduling will be enhanced by AI’s ability to analyze patterns across care notes and visit completion data, while helping HR teams by scanning communication logs for early signals of burnout, disengagement, or performance gaps.
It’s about speeding up the intervention process for all kinds of operational gaps. Insights surfaced by AI will launch agencies into action sooner and with more intention, showing them where to focus their training efforts, schedule adjustments, or recognition programs to improve retention and care consistency.
Survey respondents were also optimistic about incorporating automation into care plan management. While caregivers are the ones to carry out their recommendations in the field, there’s much to be completed behind the scenes to personalize and update each plan.
At scale, this level of customization isn’t easy – but with Person-Centered Care becoming increasingly popular, agencies need to prioritize one-to-one support. Algorithms designed to analyze large volumes of client data can help identify which interventions lead to the best outcomes and predict potential health challenges down the road.
Rising Cost of In-Home Care
The rising cost of staff, supplies, and services is the most common barrier to growth among American home care agencies: 61% of respondents reported it as their top concern. More specifically, a concern that’s completely out of their control. Faced with so many external pressures – an uncertain economy, a tight labor market, increasing competition – they will need to double down on factors that are within their sphere of influence. And technology can be their life raft.
Organizations feeling the burn due to rising costs will need digital tools that optimize resource allocation. Teams must be able to use their time effectively on high-value tasks, instead of getting bogged down by time-consuming administrative work. A tailor-made platform should also address concerns surrounding compliance, helping agencies navigate the ever-changing regulatory landscape at both the federal and state level.
Increasing Operational Costs
Demand for higher wages, high staff turnover rates, and a growing need for caregivers are all applying upward pressure on the cost of in-home care. Agencies are also spending more on new equipment and ongoing maintenance, coupled with the pressure to expand their service offerings to meet increased patient demand.
More than half (52%) of respondents said leveraging technology will be key to increasing their operational efficiency and therefore widening their margins. Profitability concerns rose sharply from 13% to 34%, while revenue growth was cited by 34% of leaders as a key challenge. Among enterprise agencies in particular, 45% expressed profitability concerns. These findings indicate that agencies are increasingly weaving financial performance and operational stability together, seeing them as a type of joint priority.
State of the Economy
Caregiver shortages are at the crux of so many challenges facing agencies today, and they tie into economic conditions as well. The labor market is currently strained, and coupled with existing caregiver retention issues, it has created a perfect storm.
The cost of home care services in general, has also been exacerbated by inflation, and stringent government regulations require compliance with complex standards. This increases agencies’ administrative burdens and puts them at risk of being heavily fined in the event of a compliance oversight. 34% of AxisCare’s survey respondents found the state of the economy as a “Very big hindrance” and 19% “Extreme” when looking to grow their businesses.
Wage Growth
While demand for caregiving services is on the rise, caregivers are still subject to relatively low wages compared to other career paths. Most practitioners make between $15 and $20 per hour, depending on their location.
Reimbursement Issues
Medical home health services often receive reimbursement through insurance or government programs. However, non-medical care is typically a private-pay service, meaning agencies must rely on individuals’ discretion to pay on time and in full, causing unpredictable cash flow.
Growing Pain Points Around Caregivers
Caregiver recruitment and retention have long represented points of concern within the industry, and they are only poised to become more prominent in years to come.
Caregiver Shortages
Attracting and retaining caregivers is arguably the biggest challenge facing agencies today: AxisCare’s third-party survey found that 54% of respondents view staffing shortages as their strongest pain point over the next five years.
Download your copy of The Future of Home Care: A 2026 Survey of the Home Care Industry & Future Trends to learn more.
Caregiver Recruitment
In that same survey, 40% of respondents said they want to focus on caregiver recruitment in the future. A lack of skilled caregivers in the labor market, stiff competition from other areas of the healthcare sector offering higher wages, and the demanding nature of caregiving work create a twofold challenge for agencies: turnover is high, and attracting employees in the first place is an uphill battle.
Caregiver Retention
No stage of the employee lifecycle is easy for agencies: another 38% of survey respondents said they find their retention challenges to be painful. The same circumstances that make recruitment a difficult beast apply to caregiver retention, requiring agencies to remain engaged at all times and keep a finger on the pulse of employee satisfaction.
Caregiver Training
Given these retention issues, caregiver training is no easy task; in order to effectively absorb training materials, caregivers must feel engaged, committed, and motivated. Additionally, even if training is administered successfully, frequent turnover is equivalent to a “leak” in agencies’ knowledge buckets.
The Role of Technology & Caregivers
Implementing new technology can come with its share of friction, especially if caregivers belong to an older or less tech-savvy demographic. While apps, scheduling tools, and AI can all take work off caregivers’ plates, it may still take time to impart the value of these upgrades.
Growing Personalization in In-Home Care
Healthcare should never be a one-size-fits-all solution, but it often shakes out that way due to massive demand and very limited resources. In-home agencies are looking to increase their capacity for personalized care to improve outcomes, deliver better service, and boost satisfaction for all parties involved.
Improving Person-Centered Care With Software
Person-Centered Care is an emerging healthcare philosophy that increases patient involvement in the decision-making process, while making a greater effort to accommodate their preferences. To successfully implement PCC, agencies need to free up enough bandwidth to give each patient proper time and attention – and home care software is the answer.
By automating admin tasks and optimizing routine responsibilities like scheduling and billing, a home care platform can be the springboard for launching a PCC program.
Optimizing Communication Between Caregivers & Patients
Without open communication and deep understanding, personalized care simply cannot exist. Using technology to create a fluid channel between caregivers and clients – from providing feedback to involving family members – can quickly get to the bottom of patients’ needs and preserve a written record to reference whenever needed.
Adapting to the Changing Landscape
The only constant in life is change. Agencies must be equipped to respond to shifts in the market, whether they’re sudden or a slow burn. This ongoing process involves recognizing and responding to trends, emerging technologies, changing regulations, and the evolution of patient needs.
Emerging Technologies
AI, telehealth, and remote monitoring systems are constantly improving to boost efficiency and improve patient care. Agencies should remain realistic about the feasibility of integrating new technologies into their existing workflows, setting themselves up for a smooth adoption process and never biting off more than they can chew.
Business Models
There’s more than one way to retain clients in this industry. Models such as bundled care packages or diversifying your payer sources can broaden your potential customer base and create new revenue streams.
Regulations
Regulatory requirements can change at the drop of a hat. Whether it’s at the local, state, or federal level, agencies must keep a close watch to mitigate legal risks and remain compliant. Proactively engaging with regulatory bodies and participating in industry associations is a great way to make sure you’re the first to know about these changes.
Population Preferences
As demographic shifts occur, care preferences often follow suit. Increased demand for at-home service and technological intervention is just one recent example; agencies have a responsibility to keep an ear to the ground if they want to remain relevant in an increasingly diverse and dynamic healthcare market.
Future-Proof Your Non-Medical In-Home Care With AxisCare
With AxisCare, your agency will be ready for and equipped for industry-wide changes and challenges. Our ever-evolving platform, coupled with our responsive customer service, is the key to maintaining your competitive edge and being at the forefront of non-medical care. Curious? Book a demo.
For more data and insights, download your free copy of The Future of Home Care: A 2026 Survey of the Home Care Industry and Future Trends.
