Economic Challenges Continue to Reshape the Home Care Industry in 2026

Economic Pressures Reshape Home Care Growth Strategies in 2026

In a continuing trend observed over the last three years, the home care industry faces significant economic challenges that are affecting growth strategies. According to a recent survey released by AxisCare, a leading provider of home care software, a staggering 61% of home care leaders reported that rising costs and limited client affordability remain major barriers to expansion.

These findings shed light on the profound impact of economic conditions on the home care sector, leading agencies to shift their focus from expansion to optimization of performance within existing markets. For the third consecutive year, leaders in the field recognize the need to navigate these financial constraints while ensuring quality care for clients.

Rising Costs and Profitability Concerns

The survey highlights a sharp increase in profitability concerns among home care agencies, with those expressing worry rising from 13% last year to 34% in 2026. The escalating costs of supplies, staff, and services are forcing agencies to reconsider their growth priorities. Rather than seeking new clients, they are concentrating on improving efficiency and refining operations in their current markets.

A significant 65% of respondents identified optimizing performance and attracting new clients as their most promising pathways for growth. Furthermore, while caregiver shortages remain an ongoing issue, the level of concern has slightly decreased from 59% to 53%, signaling potential improvements in recruitment and retention strategies.

The Role of Technology in Addressing Challenges

As agencies adapt to the pressures of the economy, the integration of technology, particularly Artificial Intelligence (AI), is becoming increasingly crucial. The survey found that 65% of industry leaders regard AI as a primary technological trend poised to transform the home care landscape. AI is expected to enhance operational efficiency through innovations in client and caregiver matching, as well as automated scheduling.

This technological adoption marks a shift from viewing AI as an additional resource to recognizing it as an essential tool for sustainability and growth. Todd Allen, CEO of AxisCare, noted that