Senior Living Construction Costs Brief Fall 2024

October 21, 2024  /  Market Reports,

This special issue brief was prepared for the American Seniors Housing Association (ASHA) by Larry Graeve and Amy Burk of The Weitz Company.

For additional information, please contact:

Larry Graeve
larry.graeve@weitz.com
515.286.4822

Amy Burk
amy.burk@weitz.com
515.822.1788

Jeff Claeys
jeff.claeys@weitz.com
515.490.7993

Although the construction confidence index is below 50, this latest survey was done just prior to the
mid-September federal rate cut of 1/2 a percentage point. Many industry leaders have since turned more optimistic about 2025 and beyond as further interest rate cuts are anticipated over the next 12 months. The commercial sector should begin to rebound after several sluggish quarters. Labor will continue to be an issue as the demand for quality workers lingers on.

Many companies that are wanting to grow are finding difficulties locating the quality workers needed to meet their growth expectations. This will drive wages higher. Labor productivity has slowed due to the rate of retiring workers who tend to be more experienced and productive compared to new workers just starting in the industry. The composite material cost index has risen a modest 3.4% over the past 12 months. We anticipate construction costs to rise 3% – 6% over the next 12 months.

Check out and download our latest Senior Living Construction Costs Brief below!

Senior Living Construction Costs Brief – Fall 2024

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