Construction costs for senior living projects remain relatively stable, but developers continue to face pricing and scheduling challenges as demand from infrastructure, utility and data center construction competes for labor and materials, according to a new market report from The Weitz Company.
Prepared for the American Seniors Housing Association (ASHA), the 2026 Senior Living Construction Costs Brief | Issue 3 examines factors influencing construction activity during the second half of 2026.
The report notes that while overall construction spending has moderated across some market segments, utilities, infrastructure and data center developments continue to generate significant project activity. At the same time, owners and developers are becoming more active in evaluating new opportunities through planning and feasibility studies.
According to the report, contractors remain positive about long-term market opportunities, although several factors continue to influence project pricing and delivery schedules.
Higher interest rates, tariff-related increases in material costs, labor availability and geopolitical uncertainty remain key considerations for project teams. The report also notes that expanding contractor backlogs and sustained demand in high-growth sectors are contributing to localized construction cost pressures.
Senior living developers and construction owners continue to evaluate project feasibility amid changing market conditions. Industry cost reports such as Weitz's provide insight into pricing trends, labor availability and sector demand, helping stakeholders make informed decisions on budgeting, procurement and project scheduling.
Source: Weitz.
