U.S. Seniors Housing Development Costs December 2017
Total costs for a seniors housing development delivered in 2017 or scheduled for delivery in 2018 averaged $283 per sq. ft. or $256,000 per unit, according to CBRE’s U.S. Seniors Housing Development Costs Report.
Hard costs represented the largest portion at 66% of the total, followed by soft costs at 22%. Site costs averaged 11%.
Returns on cost, when measured as stabilized net operating income as a percentage of overall development costs, generally ranged from 7.8% to 10.1%.
The report includes data and analysis from completed valuations of more than 1,500 seniors housing properties in 2017.
The make-up of properties in the data set include either stand-alone or a combination of independent living, assisted living and memory care communities.