The United States is preparing to open its first purpose-built dementia village, a $40 million development designed to feel like a community rather than a nursing home. The project, led by Agrace, will be built on the Fitchburg campus near Madison. Construction will begin this year and it is expected to open in September 2027. The secure village will house up to 65 residents and include shops, restaurants, theaters and green spaces, providing an alternative model of care as dementia diagnoses continue to rise across the country.The core of the project is eight small family-style houses rather than one large facility. Each house accommodates approximately eight residents, with private bedrooms, shared kitchens and living rooms. The goal, Agrez said, is to reestablish the rhythm of daily life and reduce the stress and disorientation often associated with institutional settings.

How Dementia Villages Are Reinvented Elder care

In addition to residences, the campus will feature facilities that reflect the real town. Residents will be able to go to the grocery store, dine at restaurants, watch movie screenings at on-site theaters and spend time in parks and gardens. Movement within the village will be unrestricted but safe, allowing people to walk freely while remaining safe.Residents will be grouped based on shared interests and life experiences, encouraging familiarity and social connections. Specially trained caregivers will provide support with daily activities while also living in self-contained studio apartments on site. Agrez said the model supports relationship-based care and can help attract and retain staff in a sector facing chronic shortages.“Living here doesn’t feel like an institution,” said Agrace President and CEO Lynne Sexten. “We are building homes that look and feel like home, while ensuring people get the care and safety they need.”American Village is inspired by Hogeweyk in the Netherlands, a pioneering dementia village that opened in 2009. Since then, similar communities have developed in parts of Europe, Australia, Canada, and China. Research on these models shows improved quality of life, reduced anxiety and depression, and reduced stress for families and caregivers.

Meet growing demand

The incidence of dementia in the United States is expected to rise dramatically in the coming decades, with the number of annual dementia diagnoses expected to double by 2060. More than 6 million Americans already live with the disease, and many of them are receiving fragmented or inconsistent care. Agrez believes that rural communities can provide a more humane and effective response to this growing challenge.Agrez said the monthly cost will be comparable to assisted living. Families will pay for room and board, and medical services may be covered through insurance. The organization also plans to offer a sliding fee scale supported by donations, aiming to make the village accessible to people of varying financial means.

Rethinking aged care

Dementia Villages cannot cure the disease. Its ambition is different. The project seeks to preserve dignity, independence and social connection for as long as possible by replacing locked wards with streets, shops and shared daily life.If successful, the Wisconsin village could become a blueprint for how the U.S. cares for people with dementia for years to come.