Despite Senior Housing Hot Spots, New Construction Still Tempered

Despite a “chatter” of development, senior housing construction activity continues to remain tempered, according to data from the National Investment Center (NIC) for the Seniors Housing & Care Industry. 

As of the fourth quarter of 2012, construction activity represented 2% of existing inventory, which NIC believes is likely due to strict financing requirements for construction loans. 

Additionally, a lack of national development platforms is also adding to the limited activity, as there are currently no national development platforms in the market. NewImage

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Regardless, certain markets have been experiencing increasing amounts of development. Houston’s assisted living market is one of the current hot spots, notes NIC, as construction activity represented 18.1% of the existing inventory as of fourth quarter of 2012. 

Written by Jason Oliva

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