Beechcroft Residential Care Home, on Salop Drive in Oldbury, will shut on September 1 due to issues with the 60-year-old building – making repair and refurbishment "economically unviable" for the owners.
The home can currently cater for 50 residents.
An anonymous relative of a resident at the care home said: "We were told that, for example, if the heating system went, it wouldn't be viable to replace it.
"The floors look like they're undulating, otherwise you wouldn't be able to tell that there's anything wrong with it.
"But it is being handled very well by all the staff at the home, they've been great."
Sandwell Council owned the building until 1994, when it was bought by Carlton Care Group.
A spokesperson for Carlton Care Group said: "We can confirm that Beechcroft Residential Care Home in Oldbury is to close on September 1, 2022.
"This has been a difficult but carefully considered decision and we will now work closely with residents, families, the local authority and the Care Quality Commission to ensure the transition to new homes is as smooth as possible for residents.
"The age and construction of the building, after professional evaluation, makes repair and refurbishment economically unviable.
"Out of respect for our residents and their families we will not be making any further comment."
A spokesperson from the CQC said: "CQC are aware that the owners of Beechcroft Residential Home in Oldbury have taken the decision to close the service.
"We are monitoring the situation closely and liaising with Sandwell local authority to ensure people are moved safely to alternative services that are appropriate to their needs."
A Sandwell Council spokesperson said: "We are working closely with relatives, residents and the management of Beechcroft Residential Home, a privately-owned and managed residential care home, to ensure that any transfers of residents to other homes happen as smoothly and safely as possible."