The American Senior Housing Association (ASHA) and leading national construction firm The Weitz Company have published the results of their bi-annual Continuing Care Retirement Community (CCRC) and Senior Housing Construction Cost Data Special Issue Brief.
This latest research reveals material prices are down slightly for the year. However, skilled labor continues to be an issue. The labor shortage is causing some contractors to turn down work or be very selective about the projects they pursue.
“The effect of this skilled labor shortage is significant, as we have seen the selling price for construction services increase nearly 10 percent this past year,” said Larry Graeve, senior vice president of Senior Living, The Weitz Company. “For the coming year, we anticipate a more moderate increase of 3 to 5 percent.”
The Weitz Company is one of the largest and most established construction managers of senior living facilities in the United States. Weitz’s specialized team has a proven track record in new construction, as well as renovations and repositionings in occupied senior living communities. Weitz works closely with the designers and operators to build communities that keeps residents’ wants and needs in mind, while maximizing the client’s investment.
The firm's bi-annual CCRC and Senior Housing Construction Cost Data Special Issue Brief is released every Summer and Winter, and is based on nation-wide data of senior living projects under construction or completed by The Weitz Company. Costs are full burden and include general conditions, insurance, tax, bond and fee, but exclude site construction costs. The costs are based on a city index of 100. Each city carries a different index. These indices, coupled with local market conditions, are essential when comparing overall pricing.