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:
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.