Two care homes run by The Orders of St John Care Trust in Gloucestershire could close over the coming months.
Gloucestershire County Council told Gloucestershire Live that demand for care home placements was falling because of people preferring home support.
Staff and residents and their families have been sent letters on the potential closures of Southfield and Wyatt House (pictured) in Stroud.
The council revealed there was a 10-15% vacancy rate in the Stroud district, rising to more than 15% in Southfield.
Being built more than 50 years ago, the council said Wyatt House was no longer fit for purpose.
The news followed the announcement of the closure of OSJCT’s Townsend House and Trevone House in July last year.
Councillor Roger Wilson, cabinet member for adult social care, said: “These are proposals that reflect what we know older people truly want and that is to stay at home for as long as possible and be supported there.
“I understand that this news is likely to cause some concern to residents and their families and that is why we are offering to meet with them to discuss things in detail and hear their views, before any decision is taken.
“We remain completely committed to working with the care homes to ensure that the residents of Wyatt and Southfield continue to receive all the care they need.”
Dan Hayes, Chief Executive of The Orders of St John Care Trust, added: “We put residents, their families and our colleagues at the heart of every decision we make, and our primary concern is to ensure that our residents continue to receive the highest quality care from our dedicated caring employee team throughout the next few weeks.
“We have worked with Gloucestershire County Council to consider the challenges at these homes at length and sadly we have been unable to find a solution that keeps these two homes either financially viable or fit for purpose.
“We will of course work with the council to engage with residents, their families and our employees to hear their views, and to minimise any uncertainty caused by this proposal.”