Inflation, a lack of workers and the price of wood and steel continue to be concerns in seniors housing construction projects across the country, according to a new brief prepared for the American Seniors Housing Association by The Weitz Co.
Inflation is averaging four to six percent, wrote Larry Graeve, senior vice president of The Weitz Co. “Commodities such as lumber and steel are trending higher for the year, while asphalt is trending lower,” he said.
The labor shortage is expected to continue, according to the brief.
The per-square-foot cost of construction this summer in independent living has averaged $135 to $226, depending on materials and finishes used, according to the report. Costs in assisted living averaged $163 to $276 per square foot.
Calculations include general conditions, insurance, tax, bond and fee but not site construction costs. See the graphic below for additional information. For more information, read the brief here.