Senior Living Construction Costs Brief Summer 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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It is not typical for construction costs to go down. Although commodity prices have improved for some products, labor rates continue to increase. The shortage of skilled workers is an ongoing issue for most contractors. Wages for skilled labor are up 5.7% annually. Subcontractors have steady backlog and there is no motivation for them to get aggressive with pricing. Double digit inflation is behind us; the current escalation outlook for the next 12 months is 3-6%.

The economy is beginning look more like a soft-landing vs. an all-out recession.

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