Labor, materials issues continue to plague senior living construction: brief

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Labor, materials issues continue to plague senior living construction: brief
Labor, materials issues continue to plague senior living construction: brief

Issues related to labor and materials continue to affect seniors housing construction negatively and are not expected to abate soon, according to a new special issue brief prepared for the American Seniors Housing Association by Amy Burk of The Weitz Co.

On the labor side, the construction workforce is aging and fewer workers are entering the trades, according to the report. “There have also been significant increases in material pricing on oil-based products, lumber, PVC and gypsum,” Burk wrote. “These increases, coupled with the new tariffs, will impact the overall escalation rates on future projects.”

The per-square-foot cost of construction this summer in independent living has averaged $147 to $231, depending on materials and finishes used, the report said. Costs in assisted living averaged $176 to $280 per square foot.

The calculations include general conditions, insurance, tax, bond and fee but not site construction costs. Costs will be greater in tight labor markets and with new tariffs factored in, Weitz said.

See the graphic below for additional information. For more information, read the brief here.

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