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.
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