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                                                                    EXHIBIT 23.1
 
The Board of Directors
  Alternative Living Services, Inc.:
 
     We consent to the incorporation by reference in the registration statements
(No. 333-37737) on Form S-3, (No. 333-32907) on Form S-8 of Alternative Living
Services, Inc. and (No. 333- 38595) on Form S-8 of Alternative Living Services,
Inc. of our report dated February 21, 1997, except for note 1, which is as of
November 3, 1997, relating to the supplemental consolidated balance sheets of
Alternative Living Services, Inc. and subsidiaries as of December 31, 1996 and
1995, and the related supplemental consolidated statements of operations,
stockholders' equity, and cash flows for each of the years in the three-year
period ended December 31, 1996, which report appears in the Form 8-K/A of
Alternative Living Services, Inc.
 
     Our report dated February 21, 1997, except for note 1, which is as of
November 3, 1997, contains an explanatory paragraph that states that the
supplemental consolidated financial statements give retroactive effect to the
merger of Alternative Living Services, Inc. and Sterling House Corporation on
October 23, 1997, which has been accounted for as a pooling-of-interests as
described in note 1 to the supplemental consolidated financial statements.
Generally accepted accounting principles proscribe giving effect to a
consummated business combination accounted for by the pooling-of-interests
method in financial statements that do not include the date of consummation.
These financial statements do not extend through the date of consummation.
However, they will become the historical consolidated financial statements of
Alternative Living Services, Inc. and subsidiaries after financial statements
covering the date of consummation of the business combination are issued.
 
                                          KPMG PEAT MARWICK LLP
 
Chicago, Illinois
November 5, 1997