Oct
02

Building Starts for Seniors Housing Drop Significantly

By
Sep 29, 2008

By Jane Adler – National Real Estate Investor

Construction of new seniors housing units has slowed by 12% over the last year largely due to the frozen credit markets and building activity is likely to decline even further in the months ahead, a new report concludes.

About 45,000 seniors housing units were under construction in the 100 largest markets at the end of March, compared with about 54,000 units at the same time in 2007, according to the “Seniors Housing Construction Trends Report-2008.”

“What we are starting to see is a significant drop in new [building] starts,” says Robert Kramer, president of the National Investment Center for the Seniors Housing & Care Industry (NIC).

The report by NIC and the American Seniors Housing Association was recently released at NIC’s annual conference in Chicago.

While Kramer expects the projects now under way to open in the next two years, he says new product will become scarce after 2011. The credit crunch that has upended global financial markets and led the U.S. government to devise a $700 billion bank rescue package has caused developers to curtail or postpone new projects. It remains uncertain, however, how the government bailout may impact the opportunity for new deals going forward.

The building data shows that independent living units represent about 37% of the total units under construction, followed by apartments (29%), assisted living (17%) nursing care units (11%) and memory care (6%).

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:

http://nreionline.com/news/senior_housing_drops_0929/
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