This special issue brief was prepared for the American Seniors Housing Association (ASHA) by Amy Burk of The Weitz Company. For additional information, please contact:
The labor shortage continues to be an issue in most markets with an aging workforce and fewer young people joining the trades. This trend is not likely to subside anytime soon. There have also been significant increases in material pricing on oil-based products, lumber, PVC and gypsum. These increases, coupled with the new tariffs, will impact the overall escalation rates on future projects. The numbers are derived from completed projects and do not account for new tariffs or HOT markets. Thus, we suggest additional dollars be carried to cover tariff risk in the 2-4 percent range. If you are building in a busy market, then adjust the costs 5-10 percent to accommodate for tight labor.