Senior living construction costs remain on the rise, due in part to an ongoing labor crunch and the rising price of building materials.
Currently, mid-level assisted living projects range from $176 to $228 per gross square foot, while mid-level independent living projects range from $147 to $185 per gross square foot, according to a recent special issue brief prepared for the American Seniors Housing Association (ASHA) by The Weitz Company’s Amy Burk.
High-level assisted living projects, on the other hand, range from $237 to $280 per gross square foot, and high-level independent living projects range from $172 to $231 per gross square foot.
Earlier this year, mid-level assisted living projects fell between $170 and $212 per gross square foot, and mid-level independent living projects ranged from $141 to $171 per gross square foot.
A majority of U.S. markets are experiencing an aging construction workforce and a dearth of young adults who are joining the trade, according to Weitz.
“This trend is not likely to subside anytime soon,” the brief states.
Additionally, the construction industry has seen major increases in material pricing on oil-based products, PVC, lumber and gypsum, according to Weitz. The firm also recommends “additional dollars be carried to cover tariff risk, in the 2% to 4% range.”
Written by Mary Kate Nelson
- Summer 2018 Senior Living Construction Costs: The Weitz Company