The aim of this paper is the analysis of the possibilities of financing the construction of homes for the elderly and infirm in Croatia. Based on the demographic indicators, it can be concluded that the population in the European Union is progressively ageing, and the conducted analyzes show that there is not a sufficient number of accommodation capacities in the market in relation to the demand. The conducted analysis, the social context and the way and care of the elderly population were studied, revealed numerous shortcomings: lack of knowledge about the possibility of financing homes, lack of realistic plans and programs, unsettled legal relations, lack of income for the elderly accommodation as well as the increasing entry of the private sector into the field of research of this paper. Scientific and empirical research shows it is possible to improve the care system for the elderly and infirm by creating a financing system that will encourage the construction of private homes for the elderly and infirm as well as various forms of public-private partnership, to overcome public sector budget constraints and to ensure the balance of supply and demand within the care sector for the elderly and infirm. A comparative analysis of the situation in the European Union and the Republic of Croatia shows that more developed EU member states left institutional care for the elderly and infirm to the private sector and non-profit organizations, while in the Republic of Croatia most of the institutional care is still provided by the state and local governments. The higher demand for decentralized facilities in the Republic of Croatia is a consequence of affordability since the price of accommodation of each user is subsidized by the budget of the local government. By contrast, the real state of private investment presented in this paper shows the large difference in the price paid by the end user. It is a consequence of the capital costs and other elements included in the calculation of the price for the end user. Therefore, accommodation within a private institution is affordable and desirable only to a small number of users.