Away from home: Due to legislation, more foster children will live with relatives

Over the past five years, the Orphanages and Group Homes industry has risen slightly as demand for industry services increased after a long period of decline. Consequently, over the five years to 2017, IBISWorld expects industry revenue to rise slowly. However, over the next five years, revenue will decline as the number of children in foster care outpaces funding...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The number of children in foster care has increased in recent years, prompting a rise in government funding
  • Overall federal government funding for foster care and adoption agencies increased during the period
  • Medicare funding and private donations will bolster industry revenue
  • Industry Report - Industry Investment Chapter

    The Orphanages and Group Homes industry has a low level of capital intensity. In 2017, for every $1.00 spent on labor, the industry is expected to spend $0.07 on capital investments. This industry primarily provides services that require a high degree of personal interaction between employees and clients. Typically, industry organizations employ social workers, counselors and therapists, which contribute to wage costs. The average industry operator has 19 to 20 employees, because child care is highly labor-intensive. Consequently, overall wages are the largest component of the industry’s cost structure. Conversely, the industry has minimal capital costs, because many organizations can lease and rent facilities. Mod...purchase to read more.

    Additional Insights for the Orphanages & Group Homes Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Orphanages & Group Homes Industry are

  • Access to volunteer labor
  • Ability to receive private donations
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Federal funding for social services and Federal funding for Medicare and Medicaid in the Orphanages & Group Homes industry impact industry performance..

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    What's in this report

    What is the Orphanages & Group Homes Industry?

    This industry includes foster homes, group homes, halfway homes, orphanages and boot camps. The industry does not include substance abuse facilities, retirement homes, correctional institutions or temporary shelters. While the industry provides some services to adults, these facilities are primarily for children and youth.

    Industry Products
  • Residential facilities with counseling
  • Residential facilities without counseling
  • Residential facilities for the disabled and mentally ill
  • Contributions (private and from the government)
  • Industry Activities
  • Boys' and girls' residential facilities (e.g. foster homes, ranches and villages)
  • Camps, boot or disciplinary (except correctional) for delinquent youth
  • Delinquent youth halfway group houses and boot camps
  • Disciplinary camps for delinquent youth
  • Group foster homes for children and orphanages
  • Group homes for the mentally disabled without nursing care
  • Group homes for the visual and hearing impaired
  • Halfway group homes for delinquents and ex-offenders
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for social services
  • Federal funding for Medicare and Medicaid
  • Per capita disposable income
  • National unemployment rate
  • Number of adolescents aged 10 to 19

  • Current Performance
  • Legislation and participation
  • Increased profit margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Trend toward foster homes
  • Profitability and participation
  • Table: Orphanages & Group Homes Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Orphanages & Group Homes Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Generic Pharmaceutical Manufacturing
  • Janitorial Services
  • Supermarkets & Grocery Stores

  • Products & Services
  • Residential facilities with counseling
  • Contributions (private and from the government)
  • Residential facilities without counseling
  • Residential facilities for the disabled and mentally ill
  • Other
  • Chart: Orphanages & Group Homes Industry Products and Services Segmentation

  • Demand Determinants
  • Number of children in foster care
  • Child abuse rates
  • Crime rate

  • Major Markets
  • Children aged 6 to 15
  • Infants up to age 5
  • Adolescents aged 16 to 18
  • Young adults
  • Chart: Major Market Segmentation for the Orphanages & Group Homes Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilities, depreciationOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Orphanages & Group Homes

  • Basis of Competition
    Government fundingServicesStaff and wages
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Orphanages & Group Homes Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Orphanages & Group Homes Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Orphanages & Group Homes Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Federal funding for social services (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • The process of replacing long-stay mental institutions with less isolated community mental health services such as group homes.
  • Group Home
  • A private residence designed to serve as a non-secure home for unrelated persons who share a common characteristic.
  • Home And Community-Based Services Waiver
  • Medicaid waiver programs that assist people who have physical or mental disabilities.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Orphanages & Group Homes can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Orphanages & Group Homes:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Orphanages & Group Homes market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Orphanages & Group Homes, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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