Senior Living Construction Costs Brief Spring 2023

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

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Economic indicators are mixed, and the question remains whether we will have a recession or a soft landing in 2023. Construction executives’ faith in the economy has rebounded significantly, although they are still pessimistic overall. Architecture firm billings remained “soft” for the fifth consecutive month. The pace of decline remains relatively modest, which could indicate a shorter slowdown at firms rather than a more dramatic downturn and full-blown recession.

Moving forward, we anticipate a 1/3% to 1/2% monthly increase over the next six months. Keep in mind there are regional differences and product type differences. Some markets, like residential, are much softer, while industrial and infrastructure sectors remain strong.

Check out our Senior Living Construction Costs Report to see what to expect for the first half of the year.