Senior Living Construction Costs Brief (Summer 2020)
This special issue brief was prepared for the American Seniors Housing Association (ASHA) by Larry Graeve, Chris Harrison, and Amy Burk of The Weitz Company. For additional information, please contact:
Larry Graeve (larry.graeve@weitz.com or 515.286.4822)
Chris Harrison (chris.harrison@weitz.com or 515.240.1370)
Amy Burk (amy.burk@weitz.com or 515.286.4842)
The current ENR Construction Industry Confidence Index (CICI) dropped to 36 which is 20 points lower than the previous quarter, and the lowest point since Q2 2010. The CICI measures executive sentiment of the current market and where it will be in the next three to six months and over a 12-18 month period. A rating of 50 or higher shows a growing market, and we are far from that. The senior housing sector is in better shape than many other sectors, as there have been significant drops in the hospitality, entertainment, retail, office, and petroleum sectors.
Costs are full burden and include general conditions, insurance, tax, bond and fee, but do not include site costs. *The above costs are based on a city index of 100. Each city carries a different index, for example: Indianapolis has an index of 93.4, which translates to a cost range of $147 174 per SF for Independent Living; Boston has an index of 115.5, which translates to a cost range of $183-$215 per SF for Independent Living. These coupled with local market conditions are essential when comparing overall pricing.
Senior Living Housing Costs – Download the full Summer 2020 Report
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