Prices for brand spanking new assisted residing building are up early in 2026, whereas unbiased residing building prices stay comparatively flat in comparison with late 2025 knowledge.
Development prices in early 2026 are just like ranges reported final yr by the Weitz Firm, with the primary version of the Senior Dwelling Development Prices report being launched this week.
Prices of mid-level unbiased residing initiatives registered between $240 and $292 per sq. foot and excessive -level initiatives are mentioned to value between $283 to $362 per sq. foot, down $1 because the earlier report in August. Mid-level assisted residing initiatives value between $280 and $356, a lower of $3 per sq. foot within the newest report. Excessive stage assisted residing building prices stay the identical since August at a variety of $363 to $452 per sq. foot.
Tasks with under-building parking are at the moment starting from $153 to $190 per sq. foot on the mid-level and $190 to $238 per sq. foot on the excessive stage, a rise of $1 per sq. foot for mid-level initiatives.
Pricing for mid-level cottage initiatives ranged between $187 and $221 per sq. foot and high-level initiatives ranged between $263 to $322 per sq. foot.
The development business enters 2026 with “combined alerts,” the authors of the report famous. Starting stage improvement has lengthened brought on by tariff uncertainty and “advanced market circumstances.”
“Success on this surroundings depends upon proactive threat administration. Contractors are specializing in early planning, streamlined procurement, sooner decision-making, and versatile supply fashions that may adapt to altering circumstances. Whereas uncertainty stays excessive, the business continues to maneuver forward-albeit with warning,” the report states.
The senior residing business continues to wrestle with a twin problem of ageing properties and an ongoing lack of latest improvement. The business can be “able to develop, however struggling to construct” as operators capitalize on new demand however nonetheless wrestle to get new initiatives began.
Price escalation in 2026 is anticipated to be between 3% and 4%, down from 8% to 12% throughout the pandemic restoration. This is because of decrease materials prices and extra secure provide chain dynamics.
