U.S. Residential Intellectual and Development Disability Care Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

U.S. Residential Intellectual and Development Disability Care Market Size

• The U.S. residential intellectual and development disability care market size was valued at USD 789.31 million in 2024 and is expected to reach USD 1,211.35 million by 2032, at a CAGR of 5.50% during the forecast period
• The market growth is largely fueled by increased government support, rising awareness, and an aging caregiver population, leading to greater demand for structured long-term residential care for individuals with intellectual and developmental disabilities
• Furthermore, shifting societal attitudes, expanding Medicaid funding, and a push for person-centered care models are establishing residential IDD care as a critical component of the U.S. healthcare system. These converging factors are accelerating the development of specialized care facilities and community-based housing, thereby significantly boosting the industry's growth

U.S. Residential Intellectual and Development Disability Care Market Analysis

• Residential care for individuals with intellectual and developmental disabilities (IDD) serves as a crucial component of the healthcare continuum, offering structured environments that support independent living through tailored care, skill-building programs, and behavioral support services
• The growing demand for residential IDD care is primarily driven by the rising prevalence of developmental disorders, an increasing number of aging family caregivers, and expanding public and private sector efforts to improve long-term care accessibility and quality
• The market is experiencing notable expansion due to supportive Medicaid funding, evolving regulatory frameworks, and heightened focus on person-centered care approaches that emphasize dignity, autonomy, and social inclusion
• Accelerated transition from institutional care to smaller, community-based residential models is reshaping service delivery, encouraging the adoption of home-such as settings that promote individualized care and integration
• Group home segment dominated the U.S. residential intellectual and development disability care market with a share of 48.1% in 2024, driven by its ability to provide a balance between 24/7 support and community engagement, making it the preferred care setting among stakeholders

Report Scope and U.S. Residential Intellectual and Development Disability Care Market Segmentation    

U.S. Residential Intellectual and Development Disability Care Market Trends

“Shift Toward Community-Based and Person-Centered Residential Models”

• A significant and accelerating trend in the U.S. residential intellectual and developmental disability (IDD) care market is the transition from institutionalized care to smaller, community-based residential models focused on person-centered support. This evolution is reshaping the way services are delivered, placing greater emphasis on individualized care, independence, and social inclusion
• For instance, supported living programs and shared housing models are being increasingly adopted, allowing individuals with IDD to reside in typical neighborhoods while receiving tailored services that align with their personal goals. These models promote integration, dignity, and quality of life
• Technological tools such as remote monitoring, electronic health records, and digital care coordination platforms are also being integrated into residential care settings, enhancing service delivery and enabling real-time communication between providers, families, and support staff
• Providers are placing a growing emphasis on training direct support professionals (DSPs) in person-centered and trauma-informed practices to improve care outcomes and client satisfaction. This trend aligns with the broader push for higher standards and greater accountability in disability services
• The adoption of these innovative care approaches is encouraging organizations to reimagine traditional service models, incorporating flexible, community-integrated housing solutions that respond to the evolving needs of individuals with IDD
• This trend toward more inclusive and individualized residential care is gaining momentum as consumers, advocates, and policymakers increasingly prioritize autonomy, accessibility, and long-term quality of life for people with IDD

U.S. Residential Intellectual and Development Disability Care Market Dynamics

Driver

“Rising Demand Driven by Aging Caregivers and Expanding Access Programs”

• The growing need for long-term care options, particularly due to the aging population of family caregivers, is a key driver of the U.S. residential IDD care market
• For instance, the increasing use of Medicaid Home and Community-Based Services (HCBS) waivers is enabling more individuals with IDD to access supportive housing and personalized care outside of institutional settings. These programs are critical for addressing the care gap left by aging or unavailable family members
• As caregivers age and become less able to provide support, demand for professionally staffed residential facilities continues to rise. These settings offer consistent, 24/7 support and improve the safety and well-being of individuals with complex needs
• Broader policy initiatives and increased funding are also fueling market growth by enabling more families to plan for and access long-term residential services earlier in the care journey
• The combination of demographic shifts, expanding government programs, and rising public awareness is accelerating the need for sustainable, high-quality residential care infrastructure

Restraint/Challenge

“Workforce Shortages and Regulatory Burdens Limit Service Capacity”

• Workforce shortages and increasing regulatory requirements remain significant challenges for the U.S. residential IDD care market. Providers face high turnover among direct support professionals (DSPs) and difficulty recruiting qualified staff due to low wages and limited advancement opportunities
• For instance, many residential care organizations report staffing instability, which affects service consistency and limits their ability to expand capacity to meet rising demand
• In parallel, providers must adhere to complex regulatory and licensing standards, which can be resource-intensive to manage. This includes compliance with safety protocols, staff training requirements, documentation procedures, and periodic audits
• Financial constraints also pose barriers, as reimbursement rates may not fully cover the cost of delivering comprehensive, person-centered care, especially in high-need or rural areas
• Overcoming these challenges will require a multi-faceted approach, including increased investment in workforce development, policy reform to streamline regulatory processes, and improved funding models to support long-term care sustainability

U.S. Residential Intellectual and Development Disability Care Market Scope

The market is segmented on the basis of type, mode of operation, services, severity, indication, facilities, and end user.

 By Type

On the basis of type, the U.S. residential intellectual and developmental disability care market is segmented into day care support and residential care support. The residential care support segment dominated the market with the largest market revenue share in 2024, driven by the increasing demand for full-time supervised living arrangements for individuals with moderate to profound disabilities. Residential care programs provide long-term, structured environments that support behavioral development, life skills, and overall well-being, making them the preferred option for families seeking dependable and consistent care.

The day care support segment is anticipated to witness fastest growth from 2025 to 2032, fueled by growing interest in flexible, non-residential programs that offer daytime supervision, therapeutic activities, and skill-building opportunities while allowing individuals to reside at home with their families.

• By Mode of Operation

On the basis of mode of operation, the U.S. residential intellectual and developmental disability care market is segmented into state-run facilities, Medicaid funded services, private large facilities, and privately run small facilities. The Medicaid funded services segment held the largest market revenue share in 2024, driven by the widespread utilization of Home and Community-Based Services (HCBS) waivers, which provide financial support for a wide range of residential and support services across the U.S.

The privately run small facilities segment is expected to witness the fastest growth rate from 2025 to 2032, as they offer highly individualized care in home-such as environments, aligning with current trends favoring personalized, community-integrated support models over traditional institutional care.

• By Services

On the basis of services, the U.S. residential intellectual and developmental disability care market is segmented into campus living, therapeutic programs, pre-vocational and vocational skills, independent living skills, assistive technology services, sensory based programs, and others. The independent living skills segment dominated the market with the largest market revenue share in 2024, as many residential programs are centered on teaching daily living competencies such as hygiene, budgeting, cooking, and personal safety, with the goal of increasing autonomy.

The therapeutic programs segment is anticipated to witness fastest growth from 2025 to 2032, driven by the rising need for residential services that include behavioral therapy, occupational therapy, and mental health support tailored to individuals with developmental disabilities.

• By Severity

On the basis of severity, the U.S. residential intellectual and developmental disability care market is segmented into mild, moderate, severe, and profound. The moderate severity segment held the largest market revenue share in 2024, as individuals in this category typically require consistent support with daily activities, yet benefit from structured residential environments that promote independence and social interaction.

The severe segment is expected to grow with the fastest CAGR from 2025 to 2032, supported by increasing availability of specialized care models designed for individuals with higher dependency needs and more complex behavioral or medical conditions.

• By Indication

On the basis of indication, the U.S. residential intellectual and developmental disability care market is segmented into attention-deficit/hyperactivity disorder (ADHD), autism spectrum disorders, intellectual disability, learning disorders, and others. The intellectual disability segment accounted for the largest market revenue share in 2024, reflecting the broad prevalence of cognitive impairments requiring long-term residential care, skill development, and supervision.

The autism spectrum disorders segment is projected to witness the fastest growth from 2025 to 2032, fueled by increased diagnosis rates, heightened awareness, and the development of residential programs equipped to address communication, behavioral, and sensory challenges specific to individuals on the autism spectrum.

• By Facilities

On the basis of facilities, the U.S. residential intellectual and developmental disability care market is segmented into large facilities, medium facilities, and small facilities. The medium facilities segment held the largest market revenue share in 2024, offering an optimal balance of capacity, quality of care, and operational efficiency, making them highly scalable and adaptable to different residential models.

The small facilities segment is expected to experience the fastest growth rate from 2025 to 2032, driven by the growing preference for intimate, personalized settings that provide higher staff-to-client ratios and more individualized care experiences.

• By End User

On the basis of end user, the U.S. residential intellectual and developmental disability care market is segmented into hospitals, intermediate care facilities, group homes, private homes, intellectual and developmental disability facilities, and others. The group homes segment dominated the market with the largest market revenue share 48.1% in 2024, supported by their status as the most commonly utilized residential setting offering 24/7 care in a normalized, home-such as environment.

The intermediate care facilities segment is anticipated to grow fastest from 2025 to 2032, due to their role in supporting individuals with moderate to severe impairments who require more intensive clinical or behavioral management while still promoting personal development and community integration.

U.S. Residential Intellectual and Development Disability Care Market Share

The U.S. residential intellectual and development disability care industry is primarily led by well-established companies, including:

• BrightSpring Health Services (U.S.)
• Mosaic (U.S.)
• Sevita (U.S.)
• Benchmark Human Services (U.S.)
• L'Arche USA (U.S.)
• ResCare Residential Services (U.S.)
• The Arc of the U.S. (U.S.)
• Goodwill Industries International, Inc. (U.S.)
• Easterseals, Inc. (U.S.)
• Community Options, Inc. (U.S.)
• Volunteers of America (U.S.)
• Dungarvin, Inc. (U.S.)
• Hope Services (U.S.)
• Creative Solutions in Healthcare (U.S.)
• The Guild for Human Services (U.S.)
• Devereux Advanced Behavioral Health (U.S.)
• Waban Projects, Inc. (U.S.)
• NYSARC, Inc. (U.S.)

What are the Recent Developments in U.S. Residential Intellectual and Development Disability Care Market?

• In April 2023, The Arc of the U.S., a prominent advocacy organization for individuals with intellectual and developmental disabilities (IDD), launched a nationwide initiative aimed at expanding inclusive residential care options. The initiative focuses on increasing access to person-centered housing models, training support staff, and collaborating with policymakers to improve long-term service systems. This development reflects a growing push toward deinstitutionalization and community integration across the U.S.
• In March 2023, L’Arche USA, a network of community-based homes for individuals with IDD, announced the opening of two new inclusive living facilities designed around shared living principles. These homes focus on fostering meaningful relationships between individuals with and without disabilities, offering an alternative to traditional care settings. This expansion demonstrates the growing demand for innovative, relationship-centered residential care models
• In March 2023, BrightSpring Health Services, a major provider of residential and behavioral health services, introduced a new integrated care framework across its residential IDD programs. This model includes coordinated healthcare access, therapeutic services, and skill-building programs, improving quality and continuity of care for individuals with complex support needs. The framework underscores the industry’s trend toward holistic, outcomes-driven residential services
• In February 2023, Mosaic, a nonprofit organization supporting individuals with IDD, expanded its remote support service offerings across several states. These services use technology to deliver virtual supervision, medication reminders, and emergency assistance, helping individuals live more independently. This advancement illustrates the growing role of technology in supplementing in-person residential support and enhancing autonomy
• In January 2023, the Centers for Medicare & Medicaid Services (CMS) issued updated guidance on Home and Community-Based Services (HCBS) settings, reinforcing the need for compliance with person-centered planning and community integration standards in residential programs. This regulatory update is expected to influence program design and funding strategies nationwide, promoting higher standards in residential IDD care delivery

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