2026 Senior Living Construction Costs | Issue 4

The 2026 Senior Living Construction Costs Brief | Issue 4 was prepared for the American Seniors Housing Association (ASHA) by Amy Burk, Director of Preconstruction at The Weitz Company.

As the construction industry heads into the final quarter of 2026, market activity remains strong, supported by healthy contractor backlogs and steady demand across infrastructure, energy and data center projects. While some privately funded developments remain on hold due to higher borrowing costs and financing challenges, contractors continue to report strong pipelines and are taking a disciplined approach to pursuing new work.

Labor availability remains a significant industry challenge, with skilled trade shortages and wage pressures continuing to impact productivity and schedule certainty. Material pricing has become more predictable, but tariffs, commodity volatility and supply chain disruptions continue to create areas of escalation risk, particularly for electrical equipment and specialized building components. Construction cost escalation is expected to remain in the 3% to 5% range over the next year, reinforcing the importance of early planning, procurement and risk management.

Download the full 2026 Senior Living Construction Cost Brief | Issue 4 below for more insights and detailed information on the factors shaping today’s senior living construction market.

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