Seniors housing construction activity is still down, with the number of units under construction as of the fourth quarter of 2011 declining 7% compared to the previous quarter, reports the National Investment Center for the Seniors Housing & Care Industry (NIC).
Construction activity for the sector has now declined a cumulative 64% since reaching a cyclical high in the fourth quarter of 2007, NIC’s data shows.
The Q4 decline in 2011 was evenly spread between independent and assisting living, with declines of 7% and 6%, respectively. Overall, construction activity is at a cyclical low of 1.5% of existing inventory.
Despite this national low, there are some individual metropolitan markets that are experiencing a “wide range of construction levels,” says NIC. As of the fourth quarter, the markets with the highest levels of construction activity were Minneapolis, Minn., at 5.5%; St. Louis, Mo., at 4.4%, and Chicago, Ill., at 4.1%.
Written by Alyssa Gerace
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