Senior Living Construction Costs Brief Fall 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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After a long period of hyperinflation, the construction industry is seeing prices starting to settle down, albeit with pressures in certain areas.

• The Architectural Billing Index (ABI) has declined in all 4 regions of the county. The current rating is at 44.6, below the growth threshold of 50, indicating a decline in architectural services and a slowing construction market ahead.
• Interest rates remain high, putting a damper on construction activity in many sectors. The feds indicate they may raise rates ¼ point more in the near future, so it is unlikely that rates will come down until late 2024 or into 2025.

Check out the complete report to get the inside scoop on pricing through the end of this year.