Workforce shortage, inflation remain concerns for SNF construction
The cost of construction for both mid-level and high-level skilled nursing projects is expected to increase through the end of the term, according to a brief published Wednesday.
Adding to rising prices for materials such as lumber is a a builder workforce shortage, according to the Weitz Company brief. That's expected to hit the senior housing construction market, along with inflation hovering between 4% and 6%.
In addition to lumber, steel prices are trending higher in 2017, while asphalt is lower, experts said.
Mid-level projects, which are typically those with wood-framed construction and standard finishes, are projected to cost between $193 and $227 per square foot. This is roughly a 1.7% increase from the range reported in a brief published in January.
High-level projects, which are those constructed with luxury finishes and amenities, are expected to cost between $246 and $313 per square foot in comparison to the previously reported $241 to $311 range.
Costs for assisted living projects were around $163 to $276 per square foot, and slightly less for independent living projects, representing the range of prices for the projects related to materials and amenities.
The brief was prepared for the American Seniors Housing Association by the Weitz Company.