Assisted living construction continues to rise across the largest 31 metropolitan markets, riding a steady increase during the three years since the second quarter of 2010, according to data from the National Investment Center (NIC).
As of the second quarter of 2013, construction as a percentage of existing inventory in majority assisted living properties was 4.9%—100 basis points above its previous cyclical peak, NIC notes.
Within majority assisted living, properties that combine assisted living with at least one other care segment represented the largest share of construction at 70% of the total units under construction.
This segment was followed by freestanding memory care properties and freestanding assisted living properties, which represented 17% and 13%, respectively, of the total units under construction.
As of the second quarter of this year, 27 of the 31 largest metro markets had construction activity in assisted living properties, according to NIC. Additionally, 15 of those markets saw their respective construction pipeline activity increase from the first quarter.
Construction is becoming more widespread, notes NIC, although it is still relatively concentrated across the various metropolitan markets.
Markets like Houston, Denver, Dallas, San Antonio and Phoenix have been seeing elevated pipeline activity, with construction as of the second quarter of 2013 representing more than 10% of their respective inventories.
Out of these cities, Houston had the most construction in assisted living properties at 1,141 units, which represented 21% of its existing inventory.
Written by Jason Oliva