Social activities for people with dementia in extra care housing must be increased with the help of government funding, a report this week says.
Most people with the condition can avoid moving into care homes if they are given the support to live independently, it adds.
The report, from housing provider Housing 21, the Housing Corporation and the University of West England, also calls for health services to be based on extra care sites and for better staff training.
This would improve understanding of the challenging behaviour, ranging from wandering to aggression, that often leads to people having to move into residential care.
However, the study states that some people with severe dementia would still need nursing home care.
Findings from the report, based on a study of 103 extra care residents with dementia, have already been trailed.