Weitz Senior Living Construction Costs Brief (August 2017)
This Special Issue Brief was prepared for the American Seniors Housing Association by Larry Graeve, senior vice president of The Weitz Company. For additional information, please contact:
- Larry Graeve (West Region) 515.286.4822
- Andrew Fisher (Central Region) 515.868.3328
- Tom Doyen (East Region) 404.307.4549
Inflation continues to be a concern for projects in every region of the country, generally on the magnitude of 4-6 percent depending on location. Commodities such as lumber and steel are trending higher for the year, while asphalt is trending lower. The labor shortage remains a common theme in virtually every market, and these conditions are expected to continue for the near term.
*Full Burden: Costs are full burden and include general conditions, insurance, tax, bond and fee, but do not include site construction costs. The above costs are based on a national average with city index of 100; the means index for a specific city should be used to adjust the data to that particular city. Charlotte, N.C., for example, has an index of 85.8, which translates to a cost range of $116-$149 per square foot for independent living. Chicago has an index of 120, which translates to a cost range of $162-$208 per square foot for independent living.
Mid-Level: Generally are of wood-framed construction with standard amenities and finishes, and typically target the more moderate income senior.
High-Level: Generally are of steel or concrete construction with high-end luxury amenities and finishes, and typically target the higher income senior.