The total cost of a senior housing development delivered in 2017 or scheduled for delivery in 2018 averaged $256,000 per unit, or $283 per square foot—and those figures are expected to rise next year, according to Senior Housing News.
That’s according to the inaugural U.S. Seniors Housing Development Costs Report from commercial real estate services and investment firm CBRE (NYSE: CBG). The report breaks down the average development costs of new senior living properties, and is based on valuations of more than 1,500 independent living, assisted living, and memory care communities in 2017.
On average, hard costs comprised 66% of the development costs for seniors housing properties delivered in 2017 or scheduled for delivery in 2018, the analysis revealed. Soft costs, meanwhile, accounted for 22% of the development costs.
You can read more on the financial trends for senior living development at Senior Housing News.