Construction activity in the seniors housing and care sector has slowed significantly over the last two years, due largely to the overall economic recession, according to the newly-released “2009 Seniors Housing Construction Trends Report” from the National Investment Center for the Seniors Housing and Care Industry (NIC) and the American Seniors Housing Association (ASHA).
“What we’re seeing is an emptying of the pipeline, which could occur by the second or third quarter of 2010,” said NIC President Robert Kramer. “There’s very little construction underway and virtually no construction funding available. It will probably be well into 2012 before it picks up.”
The percentage of total units started has fallen 37% compared with the same time last year, and 45% compared with two years ago, according to the report. Only a handful of new continuing care retirement communities were built last year, though expansion projects on existing campuses continued, according to ASHA president David Schless. The report measures senior housing construction trends in the nation’s top 100 metropolitan markets. Some traditionally strong CCRC markets, such as Boston and Chicago, continued to experience a good deal of activity, experts noted.
Information for the report comes from the NIC MAP Data and Analysis Service, which compiles data gathered from a number of sources. For more information, or to order the report, visit www.nic.org.