Skilled labor continues to be an issue in senior housing, causing some contractors to turn down work or be very selective about the projects they pursue, according to a new issue brief.

“The effect of this skilled labor shortage is significant, as we have seen the selling price for construction services increase nearly 10% this past year,” said Larry Graeve, senior vice president of senior living for The Weitz Company, which released the Continuing Care Retirement Community and Senior Housing Construction Cost Data Special Issue Brief on Feb. 3 with the American Senior Housing Association. “For the coming year, we anticipate a more moderate increase of 3 to 5%,” Graeve added.

The good news, according to the brief, is that material prices are down slightly for the year.

The per-gross-square-foot cost of construction in independent living ranged from $125 to $216 as of January, according to the report, and costs in assisted living ranged from $152 to $293. See the graphic below for additional information.