Increases in wages and purchase costs have challenged group homes' expenses to erode revenue. However, the industry's weak performance is mainly attributed to declines in demand, the impact of professional advocates campaigning for smaller, community-based settings and government policies supporting transitions to family settings and foster homes. Various socioeconomic conditions had also negatively impacted service providers' earnings. And contributing to softening in demand are decreases in crime, divorce and incarceration rates, which have reduced stressors on families and individuals and the need for group home services. Despite shifts in policy towards family settings, group homes and congregate care facilities serving newborns to young adults continue to provide services, but with industry revenue dropping at a CAGR of 1.0% through 2025 and gaining 0.2% to $9.9 billion in 2025 alone. Unfortunately, under-capacity does provide specific opportunities for group homes by encouraging them to diversify their services and engage more with their local community, including providing support for families. Providers can improve their financial performance by spurring demand by adopting new care and technology strategies, including trauma-informed care and technology-based, efficient health monitoring. The industry will see a higher growth in the number of enterprises than establishments, signaling a trend towards consolidation. However, the placement of enterprises may be influenced more by historical profitability rather than current market needs, potentially leading to a rise in closures of lower-performing providers. California, for instance, has a surplus of service providers for its population size, while some states have a shortage. Despite governmental policies favoring family-centered environments, a lack of foster homes across numerous states could thwart the shift away from group homes and residential treatment facilities will still be required for children who struggle to adapt or fit into a foster setting. Facing these challenges and remaining uncertain over the federal budget impacts for FY 2026, industry revenue is estimated to edge upward at a CAGR of 0.3%, to reach $10.1 billion through 2030, with declining profit.